S&P 500 Emini Day Trading Gap Monday November 16, 2009

S&P Emini 500 Futures opened Friday with a 2.75 point gap up that filled within the first 30 minutes of the trading day.  Prices rallied up into two areas of ascending consolidation before settling in to close in the upper third of the day’s 13.25 point trading range.  The mid point of November’s trading on a monthly candlestick shows a bullish formation that is still vainly testing the 1100 resistance.  The candlestick is towards the highs of it’s 77.25 point trading range to date, with the expectation of an 85 point average true range for the month.  The index has yet to hit the 50% retracement point of 1126.25 since the March lows. Should the market break the 1100 level this coming week, look for the 50% point as next resistance.  On a monthly basis, the index has rallied back above the up trend line from the March lows, so an end of month close below 1055 will signal a break of the up trend line.  On a daily basis, Friday’s close came on below average volume.  Often a higher high on below average volume signals weakness in the trend.  The daily chart shows the index to be in overbought territory, so look for a retest of the 1100 level with a breakdown below 1060 this week as bearish.  This is options expiration week, and that usually provides for lively market action, especially on Friday.