S&P 500 Emini Day Trading Gap Monday September 14, 2009

S&P Emini 500 Futures opened the first full trading day for the December 2009 contracts with a 2 point gap up opening at 1040.50.  After trading in a fairly narrow 6.75 overnight range, the index continued in a 5 point deep sideways move most of the morning.  Prices dipped down to touch the prior close a couple of times, filling the gap, but didn’t move through that level until just before 12 noon.  Prices pierced the prior close, rallied a bit, then sank to 1033.50, the day’s low.  The rest of the trading day was spent in an ascending trading channel with the close falling just below the median price of the channel.  The close, 1038.75, created a doji on the daily chart, essentially even on the day.  This is the first non winning day in 7, but can hardly be called a loser.  The day posted a new high for the year of 1043.75, and the index finished up 23.5 points for the week.  Most of the intra day charts finished neutral overbought/oversold, but the longer term charts (daily, weekly) favor an overbought condition.  It seems that any catalyst could trigger a correction.