Dubai Debt Announcement Rattles Futures

Traders are anticipating a sharp gap to the downside during Friday's session as fears of sovereign default shake the spirits of investors worldwide. With a shortened session on Friday for the Holiday week, it will be interesting to see how prices respond on this historically "quiet" session.

I hope all of you had a wonderful Thanksgiving! Below are the charts for Wednesday's sesssion. Equities closed slightly higher on low volume, no surprise here as most traders already went on vacation.

On the 60-minute chart, I have highlighted the key levels 1085 and 1110, this range has been in play since November 9th.

The S&P 500 reached a new high on a closing basis on Wednesday, while the NASDAQ remains about 25 points off its highs. We are still trading sideways, this is a correction so once again I would advise against making new commitments until a new intermediate trend is established. In addition, I highly recommend taking this Friday off, the thin tape can be very dangerous to a leveraged intraday trader so avoid this type of risky environment.

Last up for this shortened update is the Dollar Index and the Chinese equity market, the Shanghai Composite. The Dollar broke major support on Wednesday, sliding as low as 74.2 on the session. The Shanghai Composite has rallied since October, and is within about 200 points of reaching the prior intermediate high from August. The Shanghai Composite and five other international equity indices can be found on the International Markets page, these charts are updated daily.

As always, the long term trend. You can also Follow us on Twitter or Facebook, and sign up for our Portfolio Tilt updates by e-mail , delivered every morning.

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