Good morning! This has been a pretty slow week so far. The volume in the market remained light on Wednesday with the day beginning about where Tuesday's left off. The NASDAQ formed a small continuation pattern to the down side while the SP500 and Dow Jones Ind. Average also continued the bearish bias intraday that they were showing at the end of the prior trading day. You can see these channel breaks the best on the 15 minute charts. This selling moved until it put in an equal move as compared to the early afternoon drop on Tuesday. That price support hit around 10:00 ET at the same time as prior 15 minute lows and trend channel support hit.

The overall pace was pretty decent on the move lower, but was within the bounds of "average." This allowed for it to be able to pull back up and fall back into the range on the larger intraday time frames. The market rounded off some into 10:30 ET, popped back into the prior afternoon's 5 minute highs and then fell back again to the lows at about 11:30 ET. At that point the downside pace began to slow even more. Just after 12:00 ET the NASDAQ and Dow broke their 15 minute 20 sma resistance and the market leapt higher into the start of the afternoon.

While I missed this pop during my lunch break, I think it would have been a more difficult one to catch in the indices because it picked up speed coming off the 11:30 ET pivot instead of basing along resistance and then breaking higher. While this pivot off prior lows was pretty visible, if you missed that entry, there was not much for clear cut continuation patterns that would have suggested such a strong upside rally. There was the break in the small 2 minute uptrend channel around 12:15 ET coming off that low, but that is a much more aggressive setup that can be easier to miss. You can see it here on the 5 minute ES (SP500 EMini).

The early afternoon breakout on the intraday charts took the market all the way back to Monday's highs. That resistance at the upper end of the 60 minute range halted it in it's tracks and the indices rounded off at those levels going into 13:00 ET.  The SP500 and Dow both did it with slightly higher highs at a slower pace, while the NASDAQ fell more into a descending triangle. The selling picked up around 13:30 ET, taking the market back into 15 minute 20 sma support and earlier congestion.

Things began to get even more whippy for the remainder of the day. I ended up sitting most of it out, which was rather lucky since a lot of the things I did look at for potential would given a false setup only to fall back. It was mainly 1 or 2 larger cons, such as too short of a basing time, that kept me on the sidelines. By 14:45 ET the market was back into the middle of the morning range and it whipped up and down on the 5 minute charts for one last time into the final hour of the day, closing not too far from where the morning began.

Not a lot has changed since yesterday in the market. We did get that bit of selling out of the open we were looking at. That was followed by another push higher, which we had also been watching for. We are still dealing with a lot of congestion though and not getting any stronger breakout patterns forming. The NASDAQ looks weaker since it's more extended on the daily, while the SP500 still has some added bit of room where it can move higher.

We don't have a lot of big name earnings releases this week. DELL, TGT and HSP are a couple. There is a lot of economic data coming out though. Most is in the premarket, but also watch for the 9:45 ET Michigan Sentiment. See below for more information.

Economic Reports and Events
Nov. 10: Export ex-ag. for Oct. (8:30 am), Import Prices ex-oil for Oct. (8:30 am), Initial Claims 11/05 (8:30 am), Trade Balance for Sep (8:30 am), Mich. Sentiment-Prel. for Nov. (9:45 am), Treasury Budget for Oct. (2:00 pm)
Nov. 11: -
Nov. 14: -
Nov. 15: Core PPI for Oct. (8:30 am), NY Empire State Index for Nov. (8:30 am), PPI for Oct. (8:30 am), Retail Sales for Oct. (8:30 am), Retail Sales ex-auto for Oct. (8:30 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
Nov. 10: AEG (02:00 am ET), CPST (?), DELL (A), ECR (A), EPL (B), HSP (07:30 am ET), IGT (B), KSS (A), NWS (A), PSUN (A), PBY (?), COL (B), SPC (?), TGT (B), TLWL (07:00 am ET), PGR (?), UBB (?), URBN (B)
Nov. 11: PDA (?)
Nov. 14: A (A), BGO (A), BLI (?), BIZ (?), ERJ (B), LOW (?), TSN (?), WMT (?)
Nov. 15: ANF (A), AEOS (B), ADI (A), ARM (B), BJ (B), CNR (?), DKS (B), HMA (B), HD (B), JCP (?), LZB (A), ROST (B), SPLS (B), TJX (B), VOD (?)

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.