S&P 500 Emini Day Trading Gap Monday September 1, 2009

S&P Emini 500 Futures gapped down 9.75 points this morning, and never filled.  That gives us the first open overhead gap in awhile.  Prices made a meager attempt to move up towards the gap in the first 10 minutes, marking a high of 1021 which lasted until the last 5 minutes of the day.  The closing candlestick pierced the high, stayed within a tick, forming a double top, and printed a new daily high of 1021.25.  Trading from 9:40 to 1:40 created a descending triangle, typically considered a bearish indicator.  Since prices never broke support, no short signal was ever created.  Instead, the index stayed in consolidation from 2 to 2:30 breaking the resistant trend line in a sideways fashion.  Prices popped up for about 15 minutes, consolidated briefly, retested the prior support, then retraced all of today’s action and closed close to the top of the range, down 8.75 points at 1020.  Volume was less than average at 1.65 million contracts, and the range was a relatively narrow 8 points.  Average true range is 17.9 points.