Good morning! We are continuing to see slower trading in the market as the correction from the monthly highs progresses. The NASDAQ, which had looked stronger going into the day, held up the best on Tuesday, but overall the indices still just bounced around within the daily trend channel that they've been holding since the beginning of the month. After opening into 5 minute 200 sma resistance in the SP500 and NASDAQ, the market sold off until 10:00 ET when they came into trend channel support on the 15 minute charts from the range of the prior afternoon.

After a bit of a correction back off the support, the market headed lower once again, breaking out of the 15 minute trend channel out of the 10:45 ET reversal period. This selling slowed a bit just after 11:00 after putting in an equal move on the 5 minute charts as compared to the drop out of the open, but then continued with a third wave of selling into noon. The exhaustion started about 15 minutes before that reversal period with an increase in volume as the market put in another 5 minute equal move, but it took a slightly lower low on the 2 minute chart in the NASDAQ into its prior day's lows to yield a stronger correction off the support going into the afternoon.

The breakdown out of the correction from Monday's lows was a bit early given the extent of the selling, so this contributed to the shorter follow through on the move as compared to the prior drop. I was hoping to see the NASDAQ base more along lows into the early afternoon for a descending triangle on the 30 minute charts, but as the indices started to pull off the lows, the pace on the upside began to increase dramatically. They were very scalpish moves, however on the 5 minute charts, only pulling into 1-2 minute support for the most part as the market climbed steadily into the afternoon. We didn't really see much for lower risk continuation patterns before the indices hit strong resistance just prior to 15:00 ET as the NASDAQ came into morning highs and the SP500 hit 5 minute 200 sma resistance. The level held well and the market fell again into the close.

The main characteristic of Tuesday's action that stands out to me is how much overlap there was on the 5 minute charts and how it lacked many clear cut patterns intraday. So far it's been another slow summer trading week and I really don't see anything at this point to serve as a catalyst to break that trend. My own activity in the market has dropped dramatically this month. So far this week my focus has again been more on the daily charts and swingtrade action. AMAT and WWY are holding up pretty well from the upside breakouts on Monday and INFY short from last week (the 15th) had a strong selloff again Tuesday. I would expect about $65 on it. HSP long is something I am still watching for a position trade on a breakout from the weekly range, but the QLGC base along $30 that I've been following has pulled over the 20 week sma, so I will be removing that from my watch for now.

Economic Reports and Events
Aug. 24: Durable Orders for Jul. (8:30 am), New Home sales for Jul. (10:00 am)
Aug. 25: Initial Claims 08/20 (8:30 am), Help-Wanted Index for Jul. (10:00 am)
Aug. 26: Mich. sentiment-Rev. for Aug. (9:45 am)
Aug. 29: -
Aug. 30: Consumer Confidence for Aug. (10:00 am), Factory Orders for Jul. (10:00 am), FOMC Minutes (2:00 pm)

Earnings Announcements of Interest
Only stocks with an average daily volume of 500K+ are listed. List may not be complete so be sure to always check your stocks' earnings dates before holding a position overnight. (A) = Earnings after the close, (B) = Earnings before the open, (?) = Earnings time not specified at the time of this writing
Aug. 24: BHP (?), CWTR (?), DLTR (B), INTU (A), MIK (A), PTR (A), PETM (A), TIVO (A)
Aug. 25: AVNX (4:00 pm ET), CHS (A), CMOS (A), DG (B), LTXX (A), OVTI (A), PDCO (B), PETC (A), SFD (B), TOL (?)
Aug. 26: -
Aug. 29: -
Aug. 30: ADCT (A), SMTC (A)