S&P 500 Emini Day Trading Gap Monday October 12, 2009

S&P Emini 500 Futures had no gap today.  Trading was in a very narrow 8.75 point range on light volume.  1.3 million contracts traded hands, average is 1.88 million contracts.  The day traded like a long weekend type Friday.  Monday is Columbus day, The markets are open, but settle a day later than normal due to the bank holiday.  The close today was the 5th up day in a row, so a correction, no matter how slight, is due.  The weekly close printed today, 1067.25, is higher than last week’s high.  That’s generally considered bullish, but the daily charts are entering overbought territory.  This week’s up volume, 8.5 million contracts, was significantly lower than the prior week’s down volume of  11.3 million contracts.  So, which will it be, bullish or bearish next week.  Who knows?  A new weekly high on low volume seems to show lack of conviction to the up side.  Expect a correction in the daily charts at least to the 20 ma.  A break below the 50 ma on volume may send the index into a deeper correction.