Dubai Debt Catalyst for Dollar Rise and Futures Drop...

Please email me at chartsignals@yahoo.com and tell me what you like and find of interest and value on Chart Signals blog. I'll be back later and give you my insights on the Dubai news and Friday's market action...be sure to check back. 11:30 am ET - A review of the last 10 years indicates that the highest Friday to Wednesday trading percentage over Thanksgiving was 2006 when Wednesday volume was 45.5 million and Friday volume was 30.9 million or 67.9% of Wednesday's volume. Today's percentage is already at 75.5%. SPY has pulled back to 109.80 from a high of 110.32. 11:05 am ET - Last year the SPY traded 370 million shares on Wednesday, November 26 the day before Thanksgiving and 119.9 million shares on Friday, November 28. Friday's volume in 2008 was 32.4% of Wednesday's volume. We expected today to be a relatively light volume day, however, with the Dubai news and the the Asian and European sell off it has apparently motivated traders to buy today near support. SPY volume on Wednesday was 109.5 million shares. Niney five minutes into today's half trading session, SPY volume is 73.4 million shares or 67% of Wednesday's volume. It is possible that today's volume may well be near Wednesday's level. I will have to do some research over past years and see if there is a time during the past 10 years where this has occurred. Today's comparatively high volume for Thanksgiving Friday has been net buying. How can we tell? The SPY opened at 108.40 and is currently 110.23 up $1.83...I hope you did not overreact to the gap down and that you were logical in your trading action.... 9:45 am ET - In the first 15 minutes of trading U.S. traders ahve been net buyers...we'll see if this holds up...SPY opened at 108.40 and is now 109.06 up 66 cents from the open...while decliners 2,608 lead advancers 162, 16 to 1, yes that is 16 to 1, on the NYSE, many individual stocks are up from their opening lows...forming white candles following a gap down... SPX Support = 1,087…1,082…1,075 Resistance = 1,100…1,113 BMO – ES -30 and NQ -45 futures are lower in pre-market trading pointing to a lower open. AAPL -5.20, AMZN -3.69, GOOG -11.79 and BIDU -16.11 are lower in pre-market trading. The Euro is down 123 pips in overnight trading and oil is quoting down $3.92 in electronic trading. XLE is down $1.63 in pre-market trading. Dubai is asking creditors for a delay it paying back $60 billion in debt. This surprise shock gave sellers in Asia and Europe a reason to sell during the Thanksgiving holiday in the U.S. Friday which is only a half day of trading promises to be other than the dull quiet day we had expected. It will be interesting to see how U.S. traders will react to the Dubai news and also early reports from the Christmas season shopping which kicks off today in what is referred to by many as Black Friday for retailers. Black Friday refers to the idea that profits move from the red to the black or positive for many retailers at this time of year. A close look at the charts reveals that the Euro, oil, ES and NQ futures while down big are up from overnight lows, so it will be interesting to see what traders do once cash markets open. Follow your rules in any trading actions today. Be logical. Look at these Charts… (click image to enlarge)