Dubai's Financial Concerns...

The S&P 500 index closed much lower last Friday as many investors exited their equity positions for more safe investments due to financial concerns in Dubai when it attempted to reschedule its $80+ billion debt. However, there was a quick pull back from the sell rally as shorts started to cover their early session losses, profiting their gain. It looks like there could be a steady opening on Monday but it could generate additional weakness in the market. Close below the 20-day moving average (1083) will mean we have seen the short-term top at 1102 area. But, if market rallies above at 1112 area in next week, then there is more upside left and it could continue to post higher levels. Keep in mine the next resistance level at 1103 and the next support level at 1083 as you make trade decisions next week.

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