Good day! Following Monday's strong showing, the market succumbed to the daily overhead resistance in the NASDAQ and corrected on Tuesday, gapping slightly lower into the open. The difference was small enough though that it closed quickly and the NASDAQ came back to prior 5 minute highs before selling really took over.

The downside was swift and decisive, bringing the NASDAQ into Friday's highs and price support along with moving average support at the 5 minute 200 sma intraday before falling into a range around the 11:00 ET reversal period. This range was extremely choppy, but it hugged the support level very well. That is, until the 13:00 ET reversal period. Here we saw a slight pop in the SP500 and Dow Jones Ind. Ave. on light volume which brought these indices more strongly into their 15 minute 20 sma resistance.

This early afternoon jump made for more aggressive timing on the larger 15 minute base breakdown. You either had to short right at that resistance, take the 2 minute Avalanche that followed, but was still in the upper half of the trading range, or just take the trend channel breakdown. The last had the most risk because the stop was a lot wider. Nevertheless, it still looked like we'd head lower into the close since overall the larger intraday time frames favored stronger downside pace and volume on upside moves continued to remain light. We didn't see this continuation until the last 30-60 minutes of the day though, when the SP500 and Dow broke down again out of 5 minute triangles and the NASDAQ also formed a 5 minute continuation pattern as it held the 15 minute 20 sma resistance.

Overall, I am still more bearish heading into Wednesday. I have not found a lot of decent short setups for swingtrades though, which is a bit of a concern. As such, I won't be overly aggressive and will let the intraday action serve as stronger guidance. 20 day moving averages remain as support on open swingtrades long.