S&P 500 Emini Day Trading Gap Tuesday December 1, 2009

S&P Emini 500 Futures opened .75 points higher than the Friday close, but the small gap filled in the first five minutes.  Today’s trading was mostly sideways, with the index testing the day’s high to form a double top at 1096.50.  The day’s range was just 11.50 points deep on average volume.  The daily chart candlestick is a doji, and occupies a very small portion of the mid range of Friday’s trading.  If the double top fails to the downside overnight and tomorrow, it could prove to be a bearish signal.  The last test of that level was on huge volume during the final 5 minutes as traders bailed out at the top of the day’s range.  Today is only the second day in the last 11 that the index has not tested at or close to the 1111.00 level.  Look for a break out above the double top and a close above that 1111 level as bullish.

S&P 500 Emini Day Trading Gap Monday November 30, 2009

S&P Emini 500 Futures opened what was supposed to be a day of light trading and low volatility with a huge 30 point gap down.  This market reaction on the post holiday session shows that traders are skittish.  Monday should be an interesting day as institutional traders digest the news from Dubai.  The markets do not typically react well to uncertainty.  Just who has exposure to the Dubai weakness will determine how and if the news will affect the financial markets.  The volume today nearly equaled a full day’s trading at 1.7 million contracts, even though the markets closed early at 1:00 pm.  The day’s range, 20.5 points was well above the 14 day average true range of 17.4 points.  Despite the short term sell off, the monthly candlestick remains above an up trend line drawn from the March low, and the weekly chart shows the second doji in a row at the week’ close.  Short term concerns aside, the Emini Futures are still in a longer term up trend with indications of weakness on news.  On the weekly chart, the market is overbought and in the decision mode.  The coming week should give us a good indication of whether the up trend continues or the market will correct.  For tomorrow, look at pre market activity for a hint as to the day’s direction.  Pre market volume at or above the 250-300 thousand contract range indicates the possibility of high volatility.

S&P 500 Emini Day Trading Gap Wednesday November 25, 2009

S&P Emini 500 Futures had a low volume, low volatility pre-holiday trading day.