S&P 500 Emini Day Trading Gap Thursday July 30, 2009

S&P Emini 500 Futures opened Wednesday with a gap down of  7 points at 969.50. Prices moved lower then attempted to fill the gap.  Traders got the price to a 76.4% retracement, 975.00, but that proved to be the day’s high and the gap went unfilled.  Over the next hour, prices formed a pennant type formation with a series of lower highs and higher lows.  The 11:15 candlestick tested the descending resistance line but failed.  The next candle breached the prior low, and provided direction to the downside for about a 4 point run.  Prices remained within a sideways moving range for the rest of the day, with the close coming at the high end of the range at 972.25, down 4.25 points.  The day’s total trading range was a narrow 8.75 points and volume was average at 1.84 million contracts.