Good day! The market put in a much wider range day and weaker day than I was expecting going into it on Wednesday. The market was pretty extended with the strong rally Tuesday afternoon following the release of the notes from the latest Fed meeting. It took all of yesterday to take back those gains, beginning with a gap lower into the open. With support on the 5 minute charts at the 200 sma in the NASDAQ, the market fell into a small range initially, forming an Avalanche which triggered around 10:00 ET. The selling then continued with a Bear Flag into 10:45 ET to bring the market to new intraday lows by the 11:00 ET reversal period and the start of the mid-day doldrums.

Even though the market fell into a range over noon, the moves were steady and without a great deal of choppiness. This made for nice pivots on the 5 minute charts and the indices held support and resistance levels very well. As with the prior afternoon, the 13:00 ET reversal period helped serve as a catalyst for a late day breakdown. This came right off resistance from prior 5 minute highs as well as a few moving average resistance levels.

The market broke down pretty well on the 15 minute charts into the afternoon. Support hit first as the SP500 and Dow Jones Ind. Ave. came into some price support from the prior day. It came at the same time as the 14:00 ET reversal period and a bit of an increase in volume. It wasn't a significant spike, however, leaving the way open for even further downside before the close. This came following the breakdown of a low level base into the 5 minute 20 sma resistance. It took the market back into the prior day's lows where support hit and held for the last 30 minutes of the day.

MRK which we've been following from the $32-$32.25 zone hit the 200 day sma target on Wednesday after a strong spike on news late in the morning. Very tight trailing stops should be initiated if you have any of this left. DG is still holding its range, but remains of interest for an upside breakout. Since the market was unable to hold onto the late day gains from Tuesday, I would continue to use greater caution on longs as swingtrades. Start looking for stocks that are basing at lows on the daily charts for breakdowns over the course of the next week.

Economic Reports and Events
Apr 14: Business Inventories for Feb. (8:30 am), Initial Claims 04/09 (8:30 am)
Apr 15: Export Prices ex-ag. For Mar (8:30 am), Import Prices ex-oil for Mar (8:30 am), NY Empire State Index for Apr (8:30 am), Capacity Utilization for Mar (9:15 am), Industrial Production for Mar (9:15 am), Mich. Sentiment -Prel for Apr (9:45 am)
Apr 18: -
Apr 19: Building permits for Mar (8:30 am), Core PPI for Mar (8:30 am), Housing Starts for Mar (8:30 am), PPI for Mar (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
Apr 14: CREE (?), DJ (B), ETN (?), EMMS (?), FCS (B), FITB (B), FDC (B), GTK (B), HIB (B), MTG (B), PEP (?), RMBS (?), LUV (B), SUNW (A), NYT (B), UNH (B), VIP (?)
Apr 15: C (B), GE (?), KEY (B), MAT (B), RF (B), TRB (B), WB (B)
Apr 18: MMM (B), BAC (B), CHKP (B), CKR (A), CCK (A), LLY (B), HAS (B), IBM (?), JCOM (A), LNCR (A), MDC (A), NSC (?), NVLS (A), PH (B), PHG (01:00 am ET), STI (B), TXN (4:30 pm ET), UDR (A), WERN (A)
Apr 19: ADTN (B), ASD (B), ASO (B), ARMHY (?), BOL (B), BSX (B), CDWC (?), CHB (A), CHFR (A), CNB (B), CYMI (?), DHI (B), DOV (A), EMC (B), FRX (?), FCX (B), GM (08:00 am ET), GILD (A), ITW (08:00 am ET), RX (A), N (A), INTC (?), JNJ (B), JCI (B), JNPR (A), KFT (A), LH (B), LU (?), MEL (?), MGG (B), NCC (?), NTRS (B), PTV (A), RSH (?), SAFC (?), STX (A), SGTL (A), SGI (?), SOV (A), STT (B), SYK (A), SVU (B), SY (B), TASR (B), TER (A), CAKE (A), KO (B), USB (B), WFC (A), YHOO (?)

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.