Good morning! With the recent bias towards wide intraday swings, it didn't come as a big surprise that Tuesday saw the same type of action. The Nasdaq Composite began the day with the best relative strength, gapping up a bit into the open, but the gap quickly filled as the S&P 500 fell into Friday's lows. All this changed with the onset of the 9:45 ET reversal period. Buying hit the market very quickly, rallying the Nasdaq into its 15 minute 20 sma resistance and the S&P 500 and Dow Jones Industrial Average into their 5 minute 20 sma resistance.

The move off the resistance zones was a very choppy one, giving us a bit of a taste of what was to come later in the day. Just prior to noon the pullback broke and the S&P and Dow took over the lead. With only a brief stall at 12:00 ET, the market continued higher until the Dow ran into its 15 minute 200 sma and the Nasdaq hit prior 15 minute highs. This also marked an equal move on the 5 minute charts when comparing the late morning pivot to the continuation out of 12:00 ET.

The indices did manage one more solid move without a lot of chop coming off this pivot high. After pulling in gradually, the market formed a small two minute Avalanche which triggered into the 13:00 ET reversal zone. The move lasted until the Dow and Nasdaq's 15 minute 20 sma and the S&P 500's 15 minute 200 sma support. The 5 minute 200 sma in the Nasdaq and S&Ps also came caught up with the price action at this time. Hitting between 13:30 ET and 14:00, these levels held for the remainder of the day. It was a very high risk finale, however, with a great deal of overlap from bar to bar into the close.

The market is currently seeing a pretty strong bull flag forming in the S&P 500 and Dow Jones on the daily charts. Intraday the action is not quite as favorable due to the rapid intraday declines that leave the pace on the 15 minute charts still more bearish. This gives the appearance for more weakness in Wednesday, but I'll be watching the 30-120 minute charts for rounding lows and slower pullbacks from the upside moves intraday.

Economic Reports and Events
Apr 05: ISM Services for Mar (10:00 am), Crude Inventories 03/31 (10:30 am)
Apr 06: Initial Claims 04/01 (8:30 am)
Apr 07: Average Workweek for Mar (8:30 am), Hourly Earnings for Mar (8:30 am, Nonfarm Payrolls for Mar (8:30 am), Unemployment Rate for Mar (8:30 am), Wholesale Inventories for Feb (10:00 am), Consumer Credit (15:00 pm)
Apr 10: -
Apr 11: -
Apr 12: Trade Balance for Feb (8:30 am), Crude Inventories 04/07 (10:30 am), Treasury Budget for Mar (14:00 pm)
Apr 13: Business Inventories for Feb (8:30 am), Export prices ex-ag for Mar (8:30 am), Import Prices ex-oil for Mar (8:30 am), Initial Claims 04/08, Retail Sales for Mar (8:30 am), Retail Sales ex-auto for Mar (8:30 am), Mich Sentiment-Prel. for Apr (9:50 am)
Apr 14: Capacity Utilization for Mar (9:15 am), Industrial Production for Mar (9:15 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
Apr. 5: BBBY (?), CBK (A), MON (B),
Apr. 6: AM (B), STZ (A), LWSN (A), PIR (B), RIMM (?), RAD (?), RPM (B)
Apr. 7: NDN (?)
Apr. 10: AA (?), SCHN (B)
Apr 11: DNA (A), LPL (?), MOS (?)
Apr 12: CBH (B), GCI (B), GTK (B), HDI (B), LRCX (A), SOSA (A)
Apr 13: MTG (B), NYT (?), TRB (B), VCP (?)
Apr 14: -
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.