S&P 500 Emini Day Trading Gap Friday August 7, 2009

S&P Emini 500 Futures gapped up 4.75 points to open at 1004.50, but prices started down after the first 5 minute candle closed.  By 9:50, the gap had filled and prices continued to drop to find support at 992.75.  Traders retraced 50% of the drop with higher highs but decreasing volume.  That’s usually a bearish indication.  The Emini futures dropped and once again tested within a tick of the 992.75 support.  The double bottom came during the lunch break at 12:20 and a low volume rally retraced to 997.75, then dropped through support to find the day’s low of 989.75.  Notice how the volume increased at the 2 o’clock reversal.  That’s when the traders got back into the mix, and prices hit the prior support as resistance.  The last hour of trading prices punched through the resistance and finished the day at 994.50, down 5.25 points.  The chart is a little cluttered, so here are the open gaps remaining underneath the current levels:

Open Gap from Friday July 31 Close 983.50

Open Gap from Wednesday July 29 Close 972.25

Open Gap from Tuesday July 14 Close 902.00