S&P 500 Emini Day Trading Gap Tuesday October 13, 2009

S&P Emini 500 Futures gapped up at the open 4.75 points.  The index stayed in a very narrow 3 point range for the first 6.5 hours of trading, then broke through lower support in an attempt to fill the gap at 2:15.  Prices fell 3 ticks short of filling the gap over the next 20 minutes of trading.  That move down made up the bulk of the day’s very narrow 8.25 point trading range.  Since today was a holiday, trading was very subdued and light.  Slightly over a million contracts traded, often that’s the number traded in the first hour of a day.  The post holiday trading action this week should be lively.  Friday is the expiration of October options, and some major earnings reports are due.  Some of the most influential reports will be Goldman Sachs, Google, IBM and Citibank.  The index often fluctuates wildly around the positive or negative earnings reports from these and other important companies reporting this week. It should be a great trading week.