S&P 500 Emini Day Trading Gap Monday August 31, 2009

S&P Emini 500 Futures gapped up 8 points to open at 1037.75.  Prices dropped to 1035 in the first 5 minutes, jumped to the day’s high of 1038.75 in the second 5 minutes, then failed through the 1035 level to enter a decline that lasted all morning.  By 12:35 sellers dwindled , the buyers took over and spent the rest of the day retracing about 45% of the day’s move.  The range today was 16.5 points, less than the 19.8 point average.  Even though the range was moderately deep today, over half of the 1.5 million contracts traded fell within a 4 point range, 1026.50-1030.50.  The close fell about at the midpoint of the heavier trading range at 1028.75, down a point.  The day ended with a large volume spike of  55,000 contracts.  While that is a dramatic finish, the volume spike was less than yesterday’s closing volume of 65,000 contracts.