MIB Futures Forecast December 27, 2012, Technical Analysis

The MIB futures rose slightly during the session on Wednesday, but otherwise were relatively lackluster. The market was very quiet as we gained just 3/10 of a percent, and as a result looks like it is ready to take a little bit of a break after the recent move higher.

We see this market is being blocked at the 16,500 level, but certainly has a bullish bias to it. Because of this, we are not afraid to buy the market, but understand that a pullback could be coming. One of the biggest reasons for this of course is the fact that we have not seen a red candle for over two weeks. On pullbacks show signs of support, we think that jumping into this market on the long side would be the way to go.