S&P 500 Emini Day Trading Gap Thursday December 17, 2009

S&P Emini 500 Futures opened up 4.50 points from yesterday’s close.  The index stayed in a narrow 3 point range most of the day.  Traders seemed to be waiting for the Fed announcement at 2:15 to make any sort of decision on market direction.  The Fed announcement did not result in any particular action right away, but at 2:30, prices broke through the support at 1108 to move back down towards yesterday’s close.  The gap filled late in the day at the 3:30 candlestick, found support at 1103, then bounced slightly to close at 1105.25.  Volume was light until after the Fed announcement, then picked up in the last hour and forty-five minutes of trading.  Overall volume was slightly below average at 1.67 million contracts.  The day’s total range was below average at 8.75 points.  Volume and range are influenced by a few factors this week.  These are that some traders are still on the December 2009 contract, there was a Fed announcement today, and that options expiration is on Friday.  These factors can have a mitigating influence on volatility.  Many institutional traders are starting to take Christmas break, and the next week may be as indecisive as to direction as this week has been so far.