S&P 500 Emini Day Trading Gap Thursday September 10, 2009

S&P Emini 500 Futures gapped up this morning, but the fill was quick.  The open of 1026.50 didn’t hold long and the gap filled within the first 5 minute candlestick.  The day’s low of 1023.25 was tested three times on the 5 minute chart, then prices took off to the upside.  The index headed up until 11:50, then moved sideways until 2 p.m.  Prices topped out at 1036.25, then broke down at the 2 o’clock reversal.  The index retraced about 65% of the morning’s move, then rallied to close at 1032.50, up 8.25 points on the day.  The open gap from the Friday August 28th close of 1028.75 was closed today, leaving no overhead unfilled gaps.  Today’s volume was above the 1.787 million contract average, coming in at 2.1 million.  The 14 day average true range has dipped to 15.3 points, making today’s 14 point depth slightly below average.  The daily charts show 5 consecutive up days and the index is moving closer to being overbought.  Most of the intra day charts closed out showing neutral overbought/oversold.  Tomorrow’s direction is anybody’s guess, but with 5 up days, a correction seems likely.