S&P 500 Emini Day Trading Gap Thursday February 4, 2010

                            S&P 500 Emini Futures Day Trading THE GAP

S&P 500 Emini Day Trading Gap Thursday February 4, 2010

S&P Emini 500 Futures gapped down at the open 5 points this morning.  Wednesday is a higher probability day to fade the gap, and today would have paid off.  The gap filled in the first 20 minutes of trading, then the index settled back into a fairly narrow sideways trading range for the rest of day.  Overnight, the index tested and pierced the 1100, same as it did during the cash market yesterday.  Trading hours range was relatively narrow at 9 points.  Recent volatility has increased the 14 day average true range to a little over 20 points.  The late December early January trading range was as low as 10 points, so volatility is returning to the market place.  The next two days will have significant employment news reports.  Friday's always volatile Non-Farm payroll report will lead the pre market pace that day.  1100 is still the current key resistance level.  Breaking that level on volume could spur resumption of the short term up trend.  Bad employment news could send the market back into a down trend.  Watch support at the recent low of 1066.50.

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