Key Levels (S&P 500) for Friday 11/27/2009

E-Mini S&P 500
In case you guys were busy with the Thanksgiving festivities and missed the news, Dubai requested a debt 'standstill' till May; essentially saying they can't make payments on their debt until May, 2010 (full story on Yahoo Finance). It's a small loan - roughly $60 billion! That, in turn, shook up the world markets and the S&P futures took a nose dive down to 1082.75 (1082.50 is a Key level). So, now the question is: will 1082.50 hold? The Dubai issue has been on the radar for a while now, so I don't know whether it's really a sufficient catalyst for a big sell off, and not to mention, $60Billion is not really a catastrophe. But anything can happen so best to stick to the charts and levels.

Bullish Scenario (if 1082.50 Holds)
If 1082.50 holds, I'm thinking a move back up to 1097 is do-able, but I'm not anticipating it to be in one quick shot; although even that scenario is certainly possible if shorts decide to cover all at once at the open (unlikely). I'm anticipating price to make a rotational move up, making pit stops at the resistance levels along the way (refer to chart for levels). Initial area of resistance is 1087.50-1088.50, above that we have 1093.75-1097 (kinda wide, but that's how I'm reading it right now). 1100-1101.50 above that. Longs are counter-trend for now, so buy the dips, sell the rips!

Bearish Scenario (if 1082.50 breaks)
Below this area, we have initial support at 1078.50, and stronger support at 1076. Anticipating that area to hold on first touch; good area to scale out of short and reload on rotation. 1072-1075 are the range extension targets, and would be the second area to scale out of shorts, or even initiate a Long position. 1069.50 after that, and 1064 is the Final target if we get a big sell off.

Good luck tomorrow!

ES - Daily Bar Chart with Volume Profile and Key Levels