NASDAQ 100 Futures Forecast November 16, 2012, Technical Analysis

The NASDAQ futures fell on Thursday as the markets continue to worry about the so called “fiscal cliff” in the United States. The parties involved don’t necessarily look like they are ready to work out a deal, so this of course has a lot of people concerned.

The NASDAQ has lagged the rest of the market over the last year, so weakness isn’t a surprise to us. The technology sector has been hit or miss, and with all of the weakness that we are seeing in Europe, it looks like tech sales will be fairly light over the next several months.

The 2500 level offers strong support from what we can tell, so a bounce is probably coming soon. It is because of this that we are willing to wait for that bounce in order to sell this market again. With this fall being so strong, the momentum probably won’t carry the sellers lower. However, we think eventually this level will give way. With this in mind, we are bearish overall.