S&P 500 Emini Day Trading Gap Tuesday September 15, 2009

S&P 500 Emini Day Trading Gap Tuesday September 15, 2009

S&P Emini 500 Futures gapped down 9 points at the opening bell to 1029.75.  Over the next hour, prices climbed to fill the gap and begin a sideways move that became more restricted as the afternoon progressed.  At 2:30, the index inexplicably popped up 4 points on heavy volume, then consolidated in a flag type formation until the last 15 minutes of trading.  At that point, volume picked up dramatically and prices soared to the day’s high of 1045.25, and closed just under the high at 1043.75.  That close is up 5 points on the day.  Today’s trading range of 15.75 points is about the average true range, and volume was slightly above average at 1.95 million contracts.  The close marks another up day over the last eight, with the 60 minute intra day chart, the daily chart and the weekly chart all residing in overbought territory.  Still looks like a correction is coming, but who knows when.  With three open gaps underneath, the most distant being 902.00 from mid-July, a large correction is possible.