S&P 500 Emini Day Trading Gap Wednesday February 3, 2010

S&P Emini 500 Futures opened Tuesday with a small gap up that quickly filled.  The index trended to the upside all day long and finished with a test and pierce of the 1100.00 level.  Resistance held at that point in the final half hour of trading, with a close at 1099.00.  Today marks the second up day in a row, and it came on above average volume.  Volume for the last two days has been good, but not as convincing as the down volume seen in the prior down days.  Important news events this week, including the non farm payroll numbers on Friday, will most certainly influence market direction.  Non farm payroll always seems to provide volatility to the markets.  Look for a correction away from the 1100.00 level tomorrow to the downside.  If the index breaks and holds above that level on good volume, the down trend may break.