S&P 500 Emini Day Trading Gap Friday March 19, 2010

S&P Emini 500 Futures had quiet day with little change from the prior close.  Friday is know as a quadruple witching day.  That’s when stock options, etf options, futures, and futures options expire on the same day.  This infrequent event can cause extreme volatility in stocks, options and futures trading.

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S&P 500 Emini Day Trading Gap Friday March 19, 2010

S&P500 day trading course daily top 3-18

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S&P500 day trading course 15 days up

S&P 500 Emini Day Trading Gap Thursday March 18, 2010

S&P Emini 500 Futures trading left an unfilled gap in it’s wake Wednesday.  Today’s open was 3.50 points higher than the Tuesday close  Market action continued it’s bullish behavior on average volume leading into options expiration Friday.  The index remained comfortably above prior resistance at 1150, and did not touched that price at all in today’s trading.  Today’s close, 1161.75, marks the highest close for the year, the highest close since the March 2009 lows, and the highest close since October 3, 2008.  That’s a lot of new high information, and may confirm the overbought condition shown on most time frames.  The effect of options expiration will be gone next week, and the markets may exhibit behavior that will show if a resumption of the prior rally has begun.  Look for resistance at 1200, and support at 1150 for the next few trading days.  Watch for volatility generated by three important reports tomorrow, CPI, Jobless Claims and Philly Fed Survey.

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S&P 500 Emini Day Trading Gap Thursday March 18, 2010

S&P 500 Emini Day Trading Gap Wednesday March 17, 2010

S&P Emini 500 Futures gapped up 3.50 points this morning, that filled when prices retreated to within a tick of yesterday’s close.  Traders pushed the futures through the 1150 mark at 11:00 a.m. on big volume.  The magic level became support, as the market tested, pierced then held above it until the close.  The bearish volume spike in the last five minutes is to be expected when prices close above psychological resistance.  The index is still overbought, and could experience a move below 1150.  A move below, then a move back above on heavy volume could validate a resumption of  the up trend begun March 2009.  Volume was average at 2 million contracts.  The index marked a new high for the year, and a new high since March 2009.

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S&P 500 Emini Day Trading Gap Wednesday March 17, 2010

S&P 500 Emini Day Trading Gap Tuesday March 16, 2010

S&P Emini 500 Futures opened Monday with a small gap that filled quickly.  Pricing once again pierced the 1150 level, but could not muster the strength to plow through the price.  Volume on the day was a below average 1.7 million contracts, and the average trading range has fallen to 10.75 points.  Today’s range was about 10 points.  The close formed a virtual daily doji again, as traders seem to be waiting for some sort of catalyst that will result in some sort of direction.  Perhaps the Fed announcement tomorrow afternoon will provide a directional spark.

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S&P 500 Emini Day Trading Gap Tuesday March 16, 2010

S&P 500 Emini Day Trading Gap Monday March 15, 2010

S&P Emini 500 Futures started Friday with a gap up to test the 1150.00 level. That level was pierced, then prices quickly fell into a relatively narrow range that found resistance at 1146.50. The close of 1144.75 approximated the median of the 4 point range that persevered for most of the day. The daily candlestick closed in a doji reflecting the current uncertainty as to market direction. Volume for the day was average, and the flat results marked the first day in the last 11 days without a higher close. Next Friday is options expiration which often is preceded with bullish market behavior. There appears to be massive resistance at the 1150 level, so look for a flat week. In the next couple of weeks, there may be a retracement to the 1110 level. A break through the 1150 level on sustained volume would signal a probable resumption of the up trend which began in March of 2009.

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S&P 500 Emini Day Trading Gap Monday March 15, 2010

S&P 500 Emini Day Trading Gap Friday March 12, 2010

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S&P 500 Emini Day Trading Gap Friday March 12, 2010

S&P 500 Emini Day Trading Gap Thursday March 11, 2010

S&P Emini 500 Futures had a small gap that filled quickly Thursday morning.  Today’s action tested, but did not pierce the high since the March 2009 low.  That high, 1148 is also the 2010 high.  Volume was above average today as the index closed up for the ninth day in a row.  A solid, sustained move above 1150 indicate a possible resumption of the up trend that started last March.  The index appears overbought, however, and continuation of this most recent move appears unlikely, at least in the near term.  Jobless claims tomorrow pre market may provide a catalyst for an indication of direction moving into options expiration next week.  Remember, tomorrow is the transition day into the June 2010 contracts.  Many traders watch the time and sales indicator, and switch to the new contract when volume swings in that direction around mid day.

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S&P 500 Emini Day Trading Gap Thursday March 11, 2010

S&P 500 Emini Day Trading Gap Wednesday March 10, 2010

S&P Emini 500 Futures gapped down at the open, but filled in the first 30 minutes of trading.  Today is the one year anniversary of the S&P Emini 500 Futures low of 670.75.  The futures have gained 71% since March 9, 2009.  Some volume came back into the market today, with volume coming in at 1.76 million contracts, just under the 50 day average of 1.91 million.  Daily charts indicate an overbought condition as the index slowly moves to perhaps challenge the 2010 high of 1148.  This week’s trading volume is diluted as traders change to the June 2010 contract from the March contracts.  This Thursday should see volume move from the 03-10 contracts to the 06-10 contracts.  Watch time and sales indicators to see which contract yields the most volume on that day.

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S&P 500 Emini Day Trading Gap Wednesday March 10, 2010

S&P 500 Emini Day Trading Gap Tuesday March 9, 2010

S&P Emini 500 Futures opened at the Friday close with no opening gap.  Trading was very light, the day’s total volume was 1.18 million contracts.  Normally, a good trading day would have that many trades in the first hour.  The close for the day just about equaled the open, and did equal Friday’s close of  1137.75.  The doji close, the light volume, the new recent daily high points to a market in decision.   If the short term up trend continues, look for a test of the January high of 1148.  There seems to be little conviction for movement either way however.  The next news event of any magnitude will most likely provide the catalyst for determination of market direction.

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S&P 500 Emini Day Trading Gap Tuesday March 9, 2010