S&P 500 Emini Day Trading Gap Wednesday October 7, 2009

S&P Emini 500 Futures opened Tuesday at 1042.75, a 7.25 point gap up from Monday.  The day’s low was also in the opening candlestick, 1042.50.  The index traveled the entire breadth of the day’s range in the morning, topping out at 1056.75 at 11:15.  Prices retraced over the course of the afternoon to test the low, and the close came at about the  mid point of the 14.25 point range, 1050.75.  Trading today erased the overhead open gap from the September 30th close of 1051.75.   Prices are continuing a bounce off the 50 day simple moving average, and on above average volume.  2.34 million contracts traded with the average volume falling at 1.9 million.  It looks as though the average may have met some resistance at the 1050 range, aftermarket trading on Tuesday is below that level.  A break above the 1050 level on volume should test the prior high at 1076, and a break below 1025, about the 50 ma, should bring correction to and possibly below the 1000 mark.