S&P 500 Emini Day Trading Gap Tuesday January 5, 2010

S&P Emini 500 Futures gapped up 9.25 points on the first trading day of 2010.  Prices surged during the first hour and one-half of trading, then spent the rest of the day in a narrow, 3 point trading range. The gap did not fill today, and that gap adds to six other open gaps, all underneath the current trading range.   Volume was rather anemic at 1.3 million contracts, less than the 1.65 million 50 day average volume.  The day’s high tops the 2009 high, and shows to be in an oversold condition on all time frames.  Expect a move towards 1100 level this week, and a direction to be established when some volume returns to the market.  If price breaks above 1130, look for a run towards the 1200 level.  Longer term, a bullish breakout could launch a retest of the August 2008 resistance just above the 1300 level.