S&P 500 Emini Day Trading Gap Friday October 9, 2009

S&P Emini 500 Futures gapped up 7.25 points at the open, and the gap didn’t fill today.  Sometimes pre market activity can suggest what the trading day might bring, and the midnight close of 1062.75 provided the median price of the day.  The day’s range was less than 11 points, and was fairly evenly distributed above and below the midnight close.  Volume was average at 1.85 million contracts, and the close was the fourth up day in a row for the Emini Futures.  The close, 1061.50, exceeds last week’s high and is starting to edge back into overbought territory on the charts.  News as released is getting more optimistic, but news alone can’t sustain a drive.  The market could still be setting up for a major correction.  If prices break down, look for initial support at the 980-1000 range.