S&P 500 Emini Day Trading Gap Tuesday September 8, 2009

S&P Emini 500 Futures gapped up a point and a half Friday to kick off the pre-holiday session.  The first 15 minutes prices traded up, then correct down to fill the gap.  The index bottomed for the day at 9:55 at 1000.75.  Buyers stepped in at 10 a.m. to rally prices up over the next couple of hours, then consolidation became the move until the close.  Prices stayed in a 4 point range, but the close pierced the upper portion of the range and hit the day’s high in the last 5 minute candlestick.  The high, 1016.25, marked the day’s range a slightly less than average 15.50 points.  The 1.62 million contracts traded was less than average, but greater than Thursday’s volume.  The close leaves the 5 minute chart in an oversold condition.  The 60 minute chart also indicates oversold, but daily charts show a neutral overbought/oversold condition with a bullish tendency.  The Labor Day weekend traditionally marks the end of summer, and the beginning of heavy institutional trading.  We expect elevated volume and volatility this week that should last the rest of the year.