S&P 500 Emini Day Trading Gap Wednesday December 9, 2009

S&P Emini 500 Futures had a 7.50 gap down this morning that remained unfilled.  The morning’s gap provides the first overhead open gap seen for some time.  The index stayed within a 8.75 point trading range all day long and closed in the lower third of the range.  Volume today was above average at 2.1 million contracts.  Today’s low 1087.75 falls on the up trend line from the March lows, and also rests at the intermediate term moving average.  A break down and close below that level could signal the long awaited correction.  The open gap from the Monday November 30th close of 1094.75 was filled today.  Four open gaps underneath current pricing remain unfilled, the lowest at 902.00 from the July 14th close.  At some point, a correction through these levels should be expected.  For the near term, expect a bounce higher tomorrow towards the 1105 level, with Thursday’s economic news influencing direction for the longer term.