Good day! I hope you had a wonderful extended weekend! I am back from my vacation so I'll be getting back into trading again myself this week. Hopefully the week is kind to us! The last ended on a pretty slow note. Thursday was choppy for the most part with a bit of late day excitement. The day began with some upside, continuing the correction off the prior morning's lows at a rather lackadaisical speed. A good deal of resistance hit with the 60 minute 20 sma and the market stalled heading into the 10:45 ET reversal period, to bring in some stronger downside pace intraday and favor selling.

This late morning descent brought the market back to opening levels, but the pace made attempts at new highs rather difficult. Despite trying for them, the slower bounce off support was not enough to sustain a rally into the afternoon and the upside mid-day quickly turned over heading into the 13:00 ET reversal period. The correction was slow mid-day, but once the trend channel broke from the rally off Wednesday's lows, the support gave way quickly, leading to new afternoon lows for the last hour of the day.

As the market sold off in the afternoon, the speed picked up, indicating a break in the 60 minute bear flag that had been forming up to that point. The problem, remained, however, of the larger daily support and the exhaustion from several weeks worth of selling already. This didn't deter the indices from retracing its steps to morning lows, but it kept them from breaking at the end of the day.

Even though things look to be wanting to correct off support on the daily charts, the pace within the pullback to these levels remains unkind. We saw this with the drop Thursday afternoon, and it can be easily continued. I am not looking for much in either direction heading into Monday. I think we need to bounce intraday to correct from all the recent selling, but I am not seeing a decent buy pattern form in the indices to make it worth while. Hence, it looks like I'll just have to wait on intraday trading for guidance again.

MIK and PRU from last Monday's letter have held highs and are no longer of interest at this point for buy setups because the intraday action last week was rather poor. IPS triggered a breakout, but is having trouble, pulling too quickly back to the 20 day sma support which needs to hold. CVS, on the other hand, is holding up pretty well while both XEC and UNT have been moving lower accordingly. I remain more cautious on swingtrades as a whole though. The daily charts have support while the weekly charts on the indices have room to move lower. It seems that we're stuck in limbo as the two time frames duke it out.

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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.