S&P 500 Emini Day Trading Gap Thursday November 5, 2009

S&P Emini 500 Futures trading was all action no direction today.  As usual, Fed announcement day provided lots of fireworks in the market’s action.  It’s obvious, by looking at the chart, where the FOMC rate decision was released.  Since the entire day was news driven, many day traders stayed on the sidelines.  The market gapped up 8.75 points at the open and looked as though it may move higher on the day.  Early news drove prices up, but the index tapered off as traders awaited the Fed announcement.  Net progress for the day was sideways, up just 1.50 points on the day.  Volume was an above average 2.36 million contracts, and the day’s 17 point range was below average.  More big news this week, highlighted by non-farm payroll on Friday.  That’s usually a big market mover.  It’s best to trade carefully on big news day’s.   Direction is sideways on the daily chart, with today’s daily candlestick showing failure on a test above the 50 day moving average.  That shows resistance at that level.  A close below Monday’s low of 1026 this week could signal a continuation of the late October downtrend.