S&P 500 Emini Day Trading Gap Tuesday October 20, 2009

S&P Emini 500 Futures had a small gap up of 1.5 points this morning that filled in the first 20 minutes of trading.  The index moved sideways for the first hour, then vaulted up 9 plus points for the only big move of the day.  From 11:40 to the close, trading found support at 1093.25.  There four tests on the 5 minute chart at that level, including the close.  Trading was a very tight 3.5 points during that period, with resistance at 1096.75 tested four times as well.  Volume was less than the average 2.6 million contracts, coming in at 1.8 million traded.  The close was higher than yesterday, but on lower volume.  That can be construed as weakness in the index, or, at the least, uncertainty.  Two influential companies, Apple and Texas Instruments, reported after market hours with earnings that exceeded estimates.  This may have a positive impact on tomorrow’s market.  After hours trading in those stocks is elevated, it remains to be seen how futures traders will respond in tomorrow.  Today’s trading filled the open gap from last Thursday of 1092.50.  All four remaining open gaps are underneath the current prices.