S&P 500 Emini Day Trading Gap Tuesday September 29, 2009

S&P Emini 500 Futures opened the week with a 3.75 point gap up that never filled.  Once again, most of the day’s approximate 15 point move was over by lunch time.  The day’s high of 1061 printed on the 1:45 candle, but price action had been and remained sideways since noon.  The close, 1058.25, was within a couple of ticks of last Thursday’s open.  The net effect on the market is status quo since the middle of last week.  Market direction is still anyone’s guess, but indecision still seems to rule.  Today’s volume was light, 1.5 million contracts, so the return to Thursday’s price levels hardly shows conviction.  As usual, we let price and volume action tell us what the market direction is doing.  Right now, movement is sideways with a possibility of a continued bounce off the 20 period simple moving average.  A solid break below the 20 day average, currently at about 1040, could signal the beginning of a dramatic correction as trader’s that are long begin to sell.