Good morning! Friday was a much stronger day than I had expected heading into it. While the daily charts certainly had more upside to them as I had mentioned in Friday's column, the 120 minute charts were still extended intraday. In order to help make up for this, the market had a slower morning, but then accelerated going into noon. The NASDAQ was the weakest index into the open with the SP500 and Dow Jones Ind. Ave. both gapping higher into the resistance from Wednesday's close. This stalled the market for the first 45 minute of the day, but when the 10:15 ET reversal period hit, both the SP500 and Dow broke their morning bases intraday to make new highs.

The upside in the morning came to a halt as the SP500 and Dow hit Wednesday's highs. This created a correction on the 5 minute charts going into the 11:00 ET reversal period and the 5 minute 20 sma support. It was the reaction to this support that led to the continuation of the rally on the daily charts. The primarily range-bound action out of the open had allowed for a longer reaction to the 120 minute extension that was a concern of mine for bullish action going into the open.  
 

When the market bounced off the 5 minute support, it hit an equal move on the 5 minute charts, but then broke the larger resistance from earlier in the week just after 11:30 ET. This also triggered the third wave of buying on the 60-120 minute charts since the lows of the 29th and 30th. The rally continued until the SP500 hit an equal move intraday as compared to the rally off the prior afternoon and the NASDAQ hit an equal move intraday as compared to its prior 15 minute move on Thursday morning. It accomplished this task at about 12:30 ET and then pulled back to the 5 minute 20 sma support heading into the early afternoon.

As the 5 minute 20 sma support hit with the 13:00 ET reversal period, the market attempted one last shot at highs on the week. The upside was enough to create a slightly higher high, but since the correction before the upside was not that significant on the 15 minute charts, the new highs formed a 2T reversal period on the NASDAQ by trapping traders at the new highs only to pullback. On a 15 minute 2T pattern, where it hugs the 5 minute 20 sma on the way to the second high, the 15 minute 20 sma is the first main target and typical support. On Friday it hit that perfectly and the market fell into a narrow and choppy range again going into the close.

The market still looks more bullish than the other way around as we kick off the new week. The indices, however, are starting to come into some rather significant daily resistance from prior highs. The intraday charts being on the third wave of buying over the last two weeks also makes us closer to resistance and at least a larger correction intraday to break the trend channel of the last couple of weeks.

VRTX has been added to my swingtrade watch list as a buy. Due to the market as a whole, I will not be as aggressively pursuing new swingtrades setups, but I am still finding it to be more bullish than the other way around. This will hopefully give me some added upside on things I've been holding for a few weeks, even though intraday I'll be working on managing open positions and more cautious on new ones.

Updates: Swingtrades: AMT from the 22nd and WLP from the 30th have trailing stops in place. AEIS from Monday has support at the 20 day sma. MRVL from Friday has support at Thursday lows. Position trades: HSP and CHRS long have support at the lows of the weekly bases. I am looking at acquiring NTRS as a position trade buy on upside breakouts from the current range on the weekly chart.

Economic Reports and Events
Sep 12: -
Sep 13: Core PPI for Aug. (8:30 am), PPI for Aug. (8:30 am), Trade Balance for Jul (8:30 am), Treasury Budget for Aug. (2:00 pm)
Sep 14: Retail Sales (8:30 am), Capacity Utilization (9:15 am), Industrial Production (9:15 am)
Sep 15: Business Inventories  for Jul. (8:30 am), Core CPI  for Aug. (8:30 am), CPI for Aug. (8:30 am), Initial Claims 9/10 (8:30 am), NY Empire State Index for Sep (8:30 am), Philadelphia Fed. for Sep (12:00 pm)
Sep 16: Current Account Q2 (8:30 am), Michigan Sentiment- Prel. for Sep (9:45 am)

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
Sep 12: CPB (B), ENER (?), PLL (A)
Sep 13: BBY (?), KR (B)
Sep 14: -
Sep 15: ADBE (A), BSC (B), PIR (?), TEK (?)
Sep 16: -