S&P 500 Emini Day Trading Gap Wednesday October 21, 2009

S&P Emini 500 Futures opened Wednesday within 2 ticks of yesterday's close, so basically there was no gap today.  Prices dropped quickly and found support at just about the point of today's close.  Support at the 1088 level failed at the end of the morning session, and the index dropped to it's low, 1082, then entered an ascending consolidation that brought prices back to resistance at 1088.  The level was pierced in the last 20 minutes, but what was support became resistance at 1088.00.  Pre market trading printed a new high for the year at 1099, but the index was not able to sustain that level during regular trading hours.  Volume today was slightly above average at 1.99 million contracts, and the 13.5 point trading range was close to the average true range of 14.43 points.  The trading range has compressed over the last 2  months.  Average true range September 1st was over 20 points deep.  The tight trading range that has developed along with a string of daily closes within a few points of one another indicates a possible break out or break down is coming soon.  Overbought indicators are suggesting the move will be down.  Recent good earnings news in the Tech sector may mitigate any possible downturn.