Dow Jones Industrial Average Futures Forecast December 28, 2012, Technical Analysis

The Dow Jones Industrial Average futures fell most of the session on Thursday as the markets continue to get rocked back and forth by headlines coming out of US congressional members. However, by the end of the day the majority of the losses were cut back, and as a result we ended up losing just 43 points.

We are currently at the very bottom of a larger consolidation area, and as such we think that supportive action could be bought going forward. In fact, the action during the Thursday session was supportive in and of itself. Because of this, it is very likely that this market continues to bounce around where we are now, and as a result it will be difficult to trade or the next couple of sessions. With this in mind, we have an upward bias, but not enough conviction to be involved in this market presently.