S&P 500 Emini Day Trading Gap Thursday January 21, 2010

S&P 500 Emini Day Trading Gap Thursday January 21, 2010

S&P Emini 500 Futures started Wednesday’s trading with a gap down of 8.25 points, and the gap remained unfilled at the end of the day.  Trading on the day took the index through 13 points to the downside before retracing about 70% of the decline.  The morning sell off was high volume, but the retracement came with less volume over a longer time period.  Tomorrow may yield high volatility with unemployment claims pre market, and big market movers reporting earnings, GOOG and GS, among others.  Today’s down action came on 66% higher than average volume, a bearish signal.  The bulk of the day’s trading was inside yesterday’s bullish action, so net market movement is sideways.  Prices are still teetering in overbought territory, with a much anticipated down turn possible.  On longer term charts, such as the weekly, the market is still very much in an uptrend.