S&P 500 Emini Day Trading Gap Thursday September 24, 2009

S&P Emini 500 Futures opened with a 2.75 point gap up this morning.  25 minutes later, the gap filled and a morning of tight, range bound trading began.  Traders seemed to be waiting for the Fed interest rate decision before committing to the market.  Right on time with the FOMC announcement, the market popped up 6.50 points, then began the rapid decline that led to a close of 1057.25, down 8.75 points.  The strength of the sell off is obvious when the move down is compared with the increasing volume.  Approximately 640,000 contracts traded in the last hour, over 25% of the day’s 2.13 million contracts traded.  The significant move down, coupled with increased volume may signal be start of a major correction.  Both the daily and weekly charts still show an up trend, but the daily chart is beginning to show weakness off of an overbought indication.  Today’s action filled the first of four lower open gaps.  This one is recent from the Monday September 21st close of 1060.00.  Next unfilled gap is at 1015.75 from the September 4th close.