Good morning! After the strong back and forth action in Tuesday, the market found itself at support rather quickly out of the open on Wednesday. The NASDAQ showed the most relative weakness, but all three indices rounded off intraday into 10:30 ET to fall into a much longer range over noon. The correction in this case was more gradual than the selloff from the prior afternoon highs. It based along the 15 minute 20 sma support for several hours as volume dropped off. This indicated that the bulls were sitting on the sidelines and not willing to stake a strong position. It also meant a change in the bias we were looking at going into the day, which had been a continuation of the 30-60 minute range.

The smaller intraday range at lows favored the bears as the upside within it had a difficult time picking up pace. Around 12:30 ET the market came into the 15 minute 20 sma resistance and the immediate trend channel from morning lows broke down. It didn't get far since the extent of the correction over noon was still minimal compared to the last selloff on that time frame, but it then again began to base into the NASDAQ's 5 minute 20 sma heading into 13:30 ET, creating a continuation breakdown into the afternoon. 

The selling gained favor as each support level was met with a base at lows on the 5 minute charts. With each of these bases came a decline in volume, but it wasn't until 14:15 ET that we started to see the volume pick up on the 15 minute charts on the selling. At that point the SP500 formed an exhaustion bar and the result was a slower decline on the next selloff into 15:00 ET. The NASDAQ saw more volume with that reversal period as well.

After three waves of selling on the 5 minute SP500, as well as an equal move hitting on the 15 minute SP500, NASDAQ and Dow, the market started a longer intraday correction from lows. It broke the downtrend channel on the 5 minute charts coming out of 15:00 ET, but still held the 5 minute 20 sma resistance. Due to an appointment, I missed the excitement of this late day decline. It essentially continued the correction from that daily resistance we have been watching over the last couple of days at the prior daily highs.

On Thursday I expect more correction to the selling from Wednesday afternoon. The rest into the close in the last hour of the day was simply not enough for a breather given the extent of the decline. We are seeing a great deal of support here on numerous time frames. The NASDAQ EMini for instance is hitting both strong daily moving average support in the 10, 20 and 50 day sma zone, but it also has 30 and 60 minute 200 sma support and then price support from the highs of 9/1. I will be using greater caution on new swingtrades at this time. We have a few key economic reports due out in the premarket with the CPI, Business Inventories and Initial Claims among them. The Philly Fed. is also due out at noon. The first ones can affect early morning action, but the Philly Fed reaction is usually rather muted. It can still cause problems for daytraders holding into it however, so watch out for that.

Updates: Swingtrades: AMT from the 22nd has hit trailing stops after hitting the $25 target. MRVL from Friday has hit adjusted stops under last Thursday's lows. VRTX from Monday has support under the 20 day sma. 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 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)
Sep 19: -
Sep 20: Building Permits for Aug (8:30 am), Housing Starts for Aug (8:30 am), FOMC-policy announcement (2:15 pm)
Sep 21: -
Sep 22: Initial Claims 09/17 (8:30 am), Leading Indicators for Aug 810:00 am)
Sep 23: -
Sep 26: Existing Home Sales for Aug (10:00 am)
Sep 27: Consumer Confidence for Sep (10:00 am), New Home Sales for Aug (10:00 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 15: ADBE (A), BSC (B), PIR (?), TEK (?)
Sep 16: -
Sep 19: APOL (B), NKE (B)
Sep 20: CC (B), GS (B)
Sep 21: BBBY (?), BMET (B), KMX (B), COGN (?), FDX (?)
Sep 22: COMS (A), FINL (4:15 pm ET), GIS (B), KBH (B), ORCL (A), PALM (A), RAD (?), TIBX (A)
Sep 23: -
Sep 26: JBL (A), WAG (?)
Sep 27: -

Toni Hansen is President and Co-founder of the Bastiat Group, Inc., and runs the popular Trading From Main Street. She can be reached at Toni@tradingfrommainstreet.com.