S&P 500 Emini Day Trading Gap Tuesday September 22, 2009

S&P Emini 500 Futures opened the week at 1054.50, a gap down of 8.50 points from the Friday close.  Prices chopped around until 11:00, then broke out to form a ragged 5 point deep trading range.  The index popped up to a high of 1062.75 on the 3:20 candlestick, printing within a tick of the Friday close and technically filling the gap.  The close of 1060.00, down 3 points, fell in the middle of the afternoon trading range.  Today’s volume of 1.7 million contracts was slightly less than average, and the 12.75 trading range was just under the 13.6 point average.  The average true trading range has dropped from the August average of around 20 points.  Expectations of increased volatility after Labor Day have yet to be fulfilled.  The daily chart candlestick is falling away from the overbought condition of last week, and looks as though it may be moving sideways this week.  It’s too soon to tell what the week may bring, but today’s action shows indecision in the marketplace.