Good morning! Wednesday got off to a slow start as the market awaited news of Fed chairman Bernanke's first address to Congress. Luckily, it didn't carry with it any surprises. While stating that more rate hikes may be necessary, he didn't stray far from Greenspan's final remarks. This created a strong little pop out of 10:00 ET. All three of the major indices (NASDAQ Comp., S&P500, and Dow Jones Ind. Ave.) managed to make new highs on the week.

Due to a lot of overhead resistance, the rally didn't last. The Dow was still dealing with it's prior daily highs, while the NASDAQ hit its 20 day sma resistance. The pace of the upside led to a slower correction off the highs, but it was a steady move. The market continued to selloff until it hit the morning lows. From there they formed small 5 minute bear flag into the 5 minute 20 sma resistance and continued to move lower out of the 12:00 ET reversal period.

With an average pace overall on the decline from morning highs, the market found itself once again dealing with range activity intraday. The mid-day action created a reverse head and shoulders pattern on the 5 minute charts, offering a pop up around 12:35 ET that continued after a short base broke and took the indices back to morning highs. The market became a lot more choppy as the indices moved into that resistance, however, creating higher risk for the final hour of the day.

Going into Thursday the market is at a lot of intraday resistance, leaving room for a downside swing on the 15 minute charts. The pace has turned over enough on the Dow to help protect it from any truly vicious selling and the other two indices are also trying to pick up a little steam off lows. Their pace isn't strong enough to insulate them, and hence the overall market, from another pullback on the daily just yet though. I'd like to see the pace pick up more on the upside over the next two days for that to happen. The concern remains that many stocks still have a great deal of weekly resistance, but I still have no reason to go against this newest buying yet.

Economic Reports and Events
Feb. 16: Building Permits for Jan (8:30 am), Export Prices ex-ag. for Jan (8:30 am), Housing Starts for Jan (8:30 am), Import Prices ex-oil for Jan (8:30 am), Initial Claims 02/11 (8:30 am), Philadelphia Fed for Feb. (12:00 pm)
Feb. 17: Core PPI for Jan (8:30 am), PPI for Jan (8:30 am), Mich. Sentiment-Prel. for Feb. (9:50 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 stock's earnings date 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
Feb. 16: ABB (B), AAP (B), AEIS (A), AMMD (A), BHI (B), BRCD (A), COG (A), DELL (A), GLBL (B), GT (B), GES (?), ICGE (B), LCP (?), LEH (B), LEXR (A), LTR (B), LTXX (A9, MRH (A), NTGR (A), NU (?), NPSP (?), NVDA (?), ONXX (B), PLD (B), PSYS (A), RYI (A), SAPE (A), SIMG (A), TGT (?), TKLC (B), FAF (B), UBB (?), WPI (A), XMSR (B)
Feb. 17: APPX (?), CPB (?), PBR (A), PCG (?), RSH (?), SIRI (B)
Note: All economic numbers and earnings reports are in lines with those compiled by Yahoo Finance. Occasionally changes will occur that are made after the posting of this column.

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.