S&P 500 Emini Day Trading Gap Friday February 5, 2010

S&P 500 Emini Day Trading Gap Friday February 5, 2010

S&P Emini 500 Futures opened down 8.50 points, and kept on going down all day.  The futures dropped 3.5% over the course of the day to close at 1060.00.  That’s down 33.50 points on nearly twice the average volume.  3.3 million contracts traded hands today while the trading range was above average at 25.75 points.  Depending on the non farm payroll numbers tomorrow pre market, such a huge one day drop usually results in a next day bounce in the index.  Disappointing numbers in the report could send futures lower.  Support on such a drop should be expected at the 1020 level, which represents the 200 day moving average.  Volatility in the pre market will provide a clue as to what to expect for the day.  No matter which way prices go tomorrow, the Non Farm payroll seldom disappoints in providing huge volatility.  It should be interesting.