S&P 500 Emini Day Trading Gap Monday October 26, 2009

S&P Emini 500 Futures gapped up 4.25 points Friday to open at 1092.75, within 1 tick of what turned out to be the day’s high.  Prices plunged during the morning trading with several high volume 5 minute candlesticks forming.  Volume tapered off as the index entered a descending consolidation in the afternoon.  A Friday afternoon volume spurt brought the close at 1076.50, down 12 points.  Trading volume was average at 2.4 million contracts.  The index closed the week within 2 points of it’s Monday open, and the weekly candlestick seemed  close to forming a doji.  This reflects a market still in the decision mode.  The weekly chart is still in overbought territory, and the market seems to favor a decline.  Earnings reporting season is starting to wind down, and the realities of the country’s economic situation may override the effects of some of the positive reports.