S&P 500 Emini Day Trading Gap Wednesday January 20, 2010

S&P Emini 500 Futures had a bullish day on above average volume and a 15.25 points deep range.  Average true range is 12.14 points deep over 14 days.  News on the earnings front fueled today’s action.  More important earnings come out this week, and when good news gives the market a boost, bad news can quickly take it away.  The price action today came within a little less than 2 points from the 12 month high, and could soon be flirting with 1150.  Look for resistance at that psychological level.  Big Blue reported after market (IBM), and the initial after market trading  indicates a possible disappointment in the report, even though it’s earnings exceeded expectations.  Who knows why?  If the market indeed breaks down tomorrow, look for initial support at the 1127.50 level.  That price area has provided support several times over the last 10 days of trading.