U.S. equity markets pared huge overnight losses after traders gobbled up stocks shortly after a gap lower opening. Investors jumped on the opportunity to buy cheaper stocks following the dramatic sell-off in global equity markets over the Thanksgiving holiday.
Equity markets were driven lower in Asia and Europe after debt problems were reported in Dubai. This large corporation known as Dubai World allegedly asked for a $59 billion debt repayment postponement until May 2010. The announcement sent shockwaves through commodity and equity markets as investors liquidated risky positions and sought safety in the U.S. Dollar.
Investors traded the markets in an orderly fashion, however, once the U.S. stock markets opened. Traders bought up lower priced stocks from the opening with the December E-mini S&P 500 rising from 1077.75 to 1098.25. The break from the recent high at 1112.25 only amounted to a retracement of the 1026.00 to 1112.25 range. This retracement zone is 1069.00 to 1059.00. The low the past two days was 1067.00.