S&P 500 Emini Day Trading Gap Monday July 13, 2009

S&P Emini 500 Futures traded in a very narrow range all day long.  With a couple of exceptions, as seen on the chart, the trading range was about 5 points wide.  That’s pretty narrow.  The day started with a 4.25 gap down from the Thursday close, to open at 872.75.  In the next 30 minutes of trading, the gap filled and the day’s high of 880.25 was attained.  Prices dipped then at 10:40 market time, we had the most significant move of the day.  Traders took the Emini from a point near the highs, about the 880 level. to the day’s low of 868.75.  That took about one hour’s worth of trading to accomplish.  Prices then climbed back up into the 5 point trading range and stayed there for the rest of the trading day.  The close, 875, approximates the middle of that range.  A very significant thing occurred with today’s close.  If you look at a weekly chart, you will notice that this is the first weekly close below the prior week’s low since the week of the March bottom.  Seems to me that’s very bearish.  We shall see.