S&P 500 Emini Day Trading Gap Monday January 11, 2010

S&P Emini 500 Futures opened down 3 points Friday from Thursday’s close.  Fairly strong volume in the first hour of trading closed the gap, and prices entered into intra day consolidation, and remained there until the final 20 minutes of trading.  Trader’s then exited their positions leading into the weekend.  Strong volume vaulted the index through resistance, and it finished at a new high of 1141.50.  Volume on the day was about average, and Friday is the fifth day in a row of higher closes on average to less than average volume.  Trader’s seem to be waiting for a much anticipated correction.  Until the market establishes bigger trading volume, longer term direction will remain difficult to determine.  Earnings reporting season gets underway soon. Major surprises to the upside or disappointments to the downside can heavily influence a news driven market.