IBEX 35 Futures Forecast November 7, 2012, Technical Analysis

Spanish stocks had a slightly negative session on Tuesday, as the consolidation in the futures market continues. The €8000 level continues to be very resistive, while the €7800 level continues to be extremely supportive. We have gone to a point where something simply needs to give way, and as such we think a sharp move is coming in the near-term. We see an uptrend line that the market formed a hammer for the Tuesday session also, and this suggests that we will attempt another break of the €8000 area. However, this market looks sloppy, nasty, and quite confused at the moment. Because of this, we are currently on the sidelines until we break out of this general vicinity.