S&P 500 Emini Day Trading Gap Friday January 22, 2010

S&P 500 Emini Futures Day Trading THE GAP

S&P 500 Emini Day Trading Gap Friday January 22, 2010

S&P Emini 500 Futures had no gap today, but had  a big drop on huge volume.  The price drop was a convincing bearish move, that came within a tick of filling the open gap from the Thursday, December 31 close of 1110.50.  That's close enough to call the gap filled.  All indications point to further downward movement in the index.  Volume on the day was a robust 3.4 million contracts, and the range was more than double the 14 day average true range at 27.5 points deep.  The close came at the low end of the range, indicating a further decline is possible if the index breaks the 1110.50 level in the morning.  If positive earnings reports come from GOOG, some of the prominent financial companies this evening, or from GE tomorrow pre market, the index could bounce before resuming any correction to the down side.  A good measure of how far down a possible correction my go can be gleaned from the open gaps beneath the current prices.  The lowest lies at 902.00 from last July.  That's a big drop from here, but 10 months of upward market movement can be erased relatively quickly.

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