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

S&P Emini 500 Futures gapped up 3.75 points on the open of  1051.50.  Over the next 20 minutes, prices fell and touched the prior close, then began an up trend that lasted all day.  The upward momentum paused at 2:20 after reaching the high for the day, at that point, of 1063.75.  The index back off 4 points, before climbing back to and exceeding the high by a tick at the last two candlesticks of the day.  The close was 1063.75, and the final candles provide a double top for the index.  The double top can be construed as bearish, we will see what the overnight trading and tomorrow’s open will bring.  Volume was above average, once again, at 2,49 million contracts.  The 16.25 point trading range is average.  The close prints a new closing high for the year, and marks the 9th up day in the last 10.  The daily chart now shows a clearly overbought indication, and all of the intra day charts closed in overbought territory.  This sets up for a correction, but who knows when that will happen.  Once again, we let the price action tell the story each day.