Good morning! After a choppy week in the market, Friday ended on a positive note as the market continued to correct off the lows made mid-day on Thursday. This pivot came after about two weeks of strong downside that had taken both the SP500 and NASDAQ Composite in their 20 month simple moving average support. The weaker Dow Jones Ind. Ave. hadn't stood a chance. It had been hugging its own 20 month sma for the majority of the year and had used the recent drop to break through that zone on strong volume.

On Friday, a move higher in the premarket led to some added strength out of the open, taking the SP500 and Dow into price resistance at prior intraday highs. The NASDAQ had a more difficult time and made only a slightly higher high before pivoting about 10 minutes into the day. The SP500 and Dow also pulled back at that time, closing their morning gaps. They then stalled at the 5 minute 20 sma support and broke back down into the 15 minute 20 sma support as the 10:15 ET reversal period hit.

While the pace of the downside was rather strong, the larger time frame support helped the market recover from the intraday selling. The NASDAQ put in only a slightly lower low and formed a 2B reversal intraday as all three indices corrected off price and moving average support. The NASDAQ swapped places with the other two, leading the way higher as a result of its stronger reversal pattern. It made it back into the highs of the day at the 10:$5 ET reversal period, while the SP500 only managed to make it about halfway. The SP500 and Dow then formed a continuation pattern by basing at the resistance for about half an hour before breaking into their own morning highs.

The market rounded off over noon after putting in another small wave of buying out of 12:00 ET. The pace began to change on this rally, and by 13:00 ET the NASDAQ was back near morning lows and the SP500 and Dow were again at their 15 minute 20 sma support. With a small 1 minute 2B pattern, all three managed to hang onto that support and fell into a wedge as the afternoon progressed. After pulling back up and basing around the mid-way point of the drop off highs, the range broke higher. Volume again increased, albeit modestly, and the indices crept higher into the close.

The market still looks as though it wishes to correct more off the recent daily and monthly support levels. While the intraday action remains jumpy with a great deal of overlap, the onset of earnings season should bring in some decent daytrade opportunities. In the meantime, I am not doing much for swing or position trades while we are in this transition period.

Economic Reports and Events
Oct. 17: NY Empire State Index for Oct. (8:30 am)
Oct. 18: Core PPI for Sep (8:30 am) PPI for Sep (8:30 am)
Oct 19: Building Permits for Sep (8:30 am), Housing Starts for Sep (8:30 am), Crude Inventories 10/14 (10:30 am), Fed's Beige Book (2:00 pm)
Oct 20: Initial Claims 10/15 (8:30 am), Leading Indicators for Sep (10:00 am), Philadelphia Fed for Oct (12:00 pm)
Oct 21: -
Oct 24: -
Oct 25: Consumer Confidence for Oct (10:00 am), Existing Home Sales for Sep (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
Oct. 17: AEP (?), C (B), CCK (A), ETN (B), FHN (B), GM (08:00 am ET), HAS (B), LSS (A), MDC (A), MAT (B), NVLS (A), OMM (A), RMBS (?), PHG (?), SVU (B), TMA (A), WB (B)
Oct. 18: MMM (B), ADTN (B), ASD (B), ASO (B), BSX (B), BCR (A), CNI (?), CDWC (?), CHB (A), CYMI (?), FITB (B), FRX (B), FCX (?), GENZ (B), GILD (A), GAP (?), INTC (?), JNJ (B), KEY (?), KFT (A), LLTC (A), MEL (?), MOT (A), NCC (B), NVS (?), PH (B), RYL (A), SAFC (07:45 am ET), STX (A), SOV (A), STT (?), STN (?), SYK (A), STI (B), TER (A), CAKE (A), USB (?), UTX (B), WFC (B), YHOO (?)
Oct 19: ABT (B), ACXM (A), AEIS (?), ACL (A), ADS (?), MO (B), ABK (B), AMGN (A), BAC (?), CRUS (A), CIT (B), CNF (?), CMA (B), CAL (?), CBST (A), ET (A), EK (B), EBAY (A), EFII (?), EMC (B), FLIR (B), GD (B), GNTX (B), HAR (A), HON (B), HCBK (B), HBAN (B), ITW (08:00 am ET), RX (B), ISIL (A), IFIN (A), JPM (B), JNPR (?), NITE (?), LEG (?), KRB (B), MOGN (A), NABI (A), NFLX (?), NYB (B), NTRS (?), ODP (B), PMCS (A), PLCM (A), QLGC (A), RDN (A), RBAK (?), SBC (B), STJ (08:00 am ET), SNV (?), TCB (?), NYT (B), VRSN (4:15 pm ET), WM (A)
Oct 20: ACS (??), AFFX (4:00 pm ET), BAX (?), BRCM (A), COF (A), CLS (A), ED (?), CREE (?), CY (B), DHR (B), ELNK (B), LLY (?), EFX (B), FISV (A), F (?), FDRY (A), FSL (A), GNSS (A), GDW (?), GOOG (?), HLIT (A), HYSL (A), ICOS (?), INFA (?), IR (B), XXIA (A), JBLU (B), LH (B), LVLT (?), MCD (B), MEDI (B), MENT (A), MCHP (A), NE (B), NOK (?), NUE (?), OI (?), ONNN (A), OSI (B), PFE (?), PNC (?), DGX (B), RHI (?), ROH (B), SNDK (A), SAP (?), SLM (B), LUV (B), LUV (B), STLD (?), SYNA (A), TLWT (?), TPX (A), TXT (B), BK (B), KO (B), HSY (B), MHP (B), TQNT (?), UPS (B)
Oct 21: AT (B), T (B), CAT (07:30 am ET), ECL (B), HIB (?), HCR (B), MYG (B), RSH (?), SLB (B), ERICY (01:30 am ET), WY (B)
Oct 24: ALTR (4:15 pm ET), ACF (A), ACI (B), ASN (B), ASH (?), ATHR (?), CD (A), CCU (A), CNET (A), FDG (?), TV (?), JCOM (?), JCI (B), KMB (B), LNCR (A), MACR (A), MRK (B), NBR (A), NBIX (?), PTV (A), PBI (A), PCL (A), PLAY (A), RCII (A), SGP (B), SLAB (B), TXN (A), TRI (B), UDR (A), VLTR (A)
Oct 25: ABGX (A), ACE (A), AKS (?), AKAM (A), AW (A), AMX (A), AMTD (B), AJG (A), AT,L (?), AVB (A), BLS (B), BXP (A), BP (02:00 am ET), BNI (B), CHRW (A), CTX (A), CME (B), CHIR (4:45 pm ET), CB (A), COH (?), CA (?), CVH (B), DST (A), DD (B), ESV (?), FFIV (?), FLEX (?), FBR (A), GNW (A), HAL (B), HCA (B), N (?), INSP (A), IP (B), ISSX (A), ISRG (?), KIM (B), LAB (B), LCAV (B), LXK (B), LMT (B), MDG (A), MTH (?), MUR (A), NCI (08:35 am ET), PNR (?), PKI (A), PPP (?), RFMD (?), SEPR (B), SHW (?), SIMG (A), SSTI (A), SIRF (A), SO (B), STM (A), TLAB (B), TIN (B), JOE (B), TMO (A), TUP (B), UPL (A), X (?), WAT (?), WBSN (A)