S&P 500 Index Futures Forecast December 3, 2012, Technical Analysis

The S&P 500 futures advanced for most of the session on Friday, but found quite a bit of resistance at the 1420 level. This resistance caused the market fall back down, and then of course caused a shooting star as you can see on the daily chart. However, a pullback would necessarily be out of the question right now even with a bullish attitude.

We think that a break of the lows from Friday is a sell signal, but probably only down to about the 1380 handle. If we did break below 1380, we would get aggressively short. However, a move above the 1420 level would be a breaking of significant resistance, and as such we would start buying.