S&P 500 Emini Day Trading Gap Friday January 8, 2010

S&P 500 Emini Day Trading Gap Friday January 8, 2010

S&P Emini 500 Futures showed average volume today in a run up to a new high of 1138.75 since early October of 2008.  Today is the first day of average volume since the holiday season.  Tomorrow’s non-farm payroll and employment numbers usually influences the market, and prices may become volatile at the open.  Four consecutive trading days have yielded new highs on light volume.  That often leads to a correction.  When the markets are news driven, such as the markets have been lately, any adversity in the reports could cause significant downward movement.  Look for a move to the 1100 level on bad news.  If the news is good, prices could break out to the 1200 level, and validate the recent new highs.