S&P 500 Emini Day Trading Gap Thursday August 27, 2009

S&P Emini 500 Futures gapped down 3 points today to open at 1024.00.  By 9:55, prices had dropped to what turned out to be the low of the day, 1020.25.  Buyers stepped in at the 10 a.m. reversal and took the index almost straight up over the next 25 minutes, filled the gap and beyond, peaking at the day’s high of 1032.00.  Trading retraced a big chuck of the morning’s 11.75 point range, then seemed to settle in around the 1026-1026.50 area.  If that sounds like a familiar number, it’s because that was the approximate median for trading yesterday afternoon.  The close, 1026.75 was just 25 cents off yesterday’s close, and created the third doji in a row on the daily charts.  Volume was just above average at 1.89 million contracts, and the previously mentioned trading range was well below the 14 day average true range of 18 points.