S&P 500 Emini Day Trading Gap Friday August 21, 2009

S&P Emini 500 Futures opened at 996.00, a 3/4 point gap up that filled in the first few seconds of trading.  Prices continued down through the gap and touched the day’s low, 994.25, then retraced back up through the open within the first 5 minute candlestick.  The up trend continued until 10 a.m., where prices retraced about 50% of the morning’s move up.  The 10:20 candle broke the retracement, and took the Eminis into a 3 point deep sideways consolidation that lasted until the last 50 minutes of the trading day.  Buyers took the index through the top of the consolidation resistance in the last 50 minutes and broke through to the high of the day, 1007.75.  In the last 15 minutes, prices settled back, confirmed support at 1005.25, and closed at 1005.50, up 10.25 points.  The action today filled the overhead open gap from the Friday, August 14th close of 1002.75.  Today’s volume of 1.65 million contracts is lower than the 50 day average of 1.84 million contracts.  The 14 day average true range has crept up to 19.2 points from the early August average of just under 16 points.  That puts today’s 13.5 point range at below average.