S&P 500 Emini Day Trading Gap Tuesday April 6, 2010

S&P 500 Emini Futures Day Trading THE GAP

S&P Emini 500 Futures gapped up 4.75 points at the open, and the gap remained open at the end of the day.  Today’s action created a new market high since the March 2008 lows.  The high came on very light trading.  Volume was just little over a million contracts which is about half of the 50 day average.  Highs marked on light volume are suspect.  It will take a high volume follow through by the markets in the next 2-3 days to validate the upward market direction.  All of the time frames show an overbought condition, so be alert for a downward correction.  Expect to see support at the 1170 level before a retest of the current highs.