Good morning! After Wednesday's strong late day breakdown, the market found itself rather exhausted on the down side going into Thursday. The market gapped up into the open, right into the down trend channel from the prior couple of days, as well as the 15 minute 20 sma in the SP500 and the Dow Jones Ind. Ave. While this helped correct from the prior day's selling, it also meant strong intraday resistance heading into the day and created a good deal of weakness that held through the first hour and 15 minutes of the day. The gap area had held during this time and filled rather quickly, with the NASDAQ 100 leading the market lower.

The NASDAQ went so far as to make new lows on the week by dropping under the prior day's lows and falling into the 20 and 50 day moving average support as the 10:45 ET reversal period hit. Volume spiked at that time to indicate some intraday exhaustion and the indices quickly recovered a great deal of the lost ground by pulling back up into the 5 minute 20 sma resistance and then breaking higher into the NASDAQ's 15 minute 20 sma resistance going into noon. 
 

As the 12:00 ET reversal period hit, the Philly Fed came out, bringing the market quickly back into lows. Volume spiked as the price support hit and the market gradually recovered, but it was unable to mount any strong patterns for the remainder of the day. Instead the market continued to correct to the prior day's selloff by falling into a narrow range into the close. While the downside pace began to favor more upside, the breakout attempt at 14:30 ET was unable to attract enough interest to break the prior 5 minute highs and continued to hold into the close.

Due to the narrow range on Thursday, particularly in the afternoon, we should see some better intraday trend action on Friday. It is options expiration, so this can create a bit more volatility. While the pace on the 30 minute charts is suggestive of more downside, the support on the daily charts can make this more difficult. As a result, I'll rely more on the intraday action for guidance and be focusing primarily on the shorter intraday time frames for now. The correction off daily highs is not enough given the strength of the move into them for an attempt at new highs, but that does not mean we can't see a bit of a bounce on the shorter time frames within this larger move off those highs.

Updates: Swingtrades: 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.