S&P 500 Emini Day Trading Gap Wednesday August 5, 2009

S&P 500 Emini Futures Day Trading THE GAP

S&P Emini 500 Futures opened the second trading day of August at 995.50, a 4.5 point gap down from yesterday’s close of 1000. The first 30 minutes of trading was spent in a narrow zone of congestion, then broke out for a steady rise to the day’s high of 1004, a new high for the year. The run up also filled the morning’s gap. About 1 p.m. market time, the up trend broke, and trading formed another congestion area that lasted 30 minutes. A drop in prices ensued over the next 15 minutes, and prices found support at 997. That support level was tested twice in the afternoon session, once at the 2 p.m. reversal low, and once again at the 3:35 candlestick. The rally off the second test of 997 took prices the high end of today’s 10.75 point range to close at 1002.50, up 2.50 points. Volume was about average at 1.86 million contracts.