Good day! The market had a pretty rough day on Thursday. After opening near the prior day's close, the indices broke quickly out of a 5 minute Bear Flag into 10:00 ET. this led to a rather rapid drop to new intraday lows at about 10:30 ET, when volume spiked to indicate exhaustion. With this pivot, the market pulled higher into lunch until it hit the 5 minute 20 sma resistance and the zone of the opening range. At that point the market again found resistance and began to gradually head back to morning lows

Thursday was not a great pattern day in the market. Support and resistance level held very well and the market followed through very strongly off them, but we didn't see a lot for technical patterns. The early afternoon drop out of the 13:00 ET reversal period was a strong one, nevertheless, and took the indices to new intraday lows into the early afternoon on Thursday.

At about 13:30 ET the market experienced a strong increase in volume, showing support and leading to a bounce into the afternoon. It was a strong correction, but the daily weakness was even stronger. When the market came back into resistance from the zone of the prior breakdown, it held, turning over once again into the afternoon. This lead to three more waves of downside on the 5 minute charts before the end of the day when the market pulled back into lows.

By breaking lower on Thursday, the indices went through the most recent support on the weekly charts in the indices. Even though the Commodity Channel Index is now listing the indices as oversold, the break in support has a great deal of room to move now until the next weekly support hits. Those in stocks breaking down out of weekly support, as suggested to look for yesterday, are doing pretty well. Intraday, however, the market is rather extended on the downside, so use caution on new intraday shorts. The daily charts still have room to move to the downside though, so treat longs more as daytrades. Our MRK fro $32-$32.20 is holding up pretty well, but has a lot of daily resistance here, while our DG continues to hold its range.

Economic Reports and Events
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 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.