Good morning! Following Tuesday's three waves of buying intraday, the market put in a greater correction on Wednesday. It held up pretty well into the open, but then began to sell off rather quickly into the 10:45 ET reversal period. This led the way to the larger intraday range scenario discussed in yesterday's column. The market still managed to post a gain on the day, but it was helped out by the slight upside gap at the open. The Dow Jones Industrial Average ($INDU) closed up 10 points at 11,278.77, while the S&P 500 ($SPX) rose 2.28 points to 1,309.93. The Nasdaq Composite added 14.74 points, ending at 2,370.88.

Crude-oil futures breached $72/barrel after the weekly supply data showed yet another week of declining U.S. gasoline inventories. Crude inventories also fell. Oil services were the strongest sector on the day, up 2.6%. Other market leaders were semiconductors (+1.7%), internet stocks (+1.7%), and brokers (+2.1%). The primarily losers were computer-hardware companies (-1.5%) and home builders (-0.8%).

The morning descent was more rapid than the last upside move in the market. This made it easier for the morning highs to hold throughout the remainder of the day. After several strong days of intraday trending action, Wednesday saw a lot more chop. In the indices themselves there was not a lot for clear-cut patterns on the 5 minute charts, although support and resistance levels and the major intraday reversal periods held well. The main setups were simply breaks in the trend channels intraday on the 15 minute charts. One had to have a lot of patience, however, because it was very easy to get flushed out due to the greater overlap from bar to bar on the 5 minute charts.

The market is still more bullish on the daily charts heading into Thursday, but I don't think it has corrected enough yet intraday to offset the rally into the day. This will make it more difficult to continue the strong upside pace just yet unless it creates that fourth wave of buying discussed yesterday. If this takes place, then I would expect a much larger correction into the weekend off tomorrow's highs.

Economic Reports and Events
Apr 20: Initial Claims 04/15 ((8:30 am), Leading Indicators for Mar (10:00 am), Philadelphia Fed for Apr (12:00 am)
Apr 24: -
Apr 25: Consumer Confidence for Apr (10:00 AM), Existing Home Sales for Mar (10:00 am)
Apr 26: Durable Orders for Mar (8:30 am), New Home Sales for Mar (10:00 am), Crude Inventories 04/21 (10:30 am), Fedââ,¬â"¢s Beige Book (14:00 pm)

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 20: ALK (?), MO (?), AGIX (B), BAX (B), BBT (B), BLS (?), BHE (B), BRCM (A), CNI (?), COF (A), CERN (?), CBE (?), CREE (?), CY (?), DHR (B), ELNK (B), LLY (?), EMC (B), EFX (?), FFIV (?), FCS (B), FDC (A), FDRY (?), GM (08:00 am ET), GNTX (08:30 AM), GYI (?), GDW (?), HYSL (A), ITW (08:00 am ET), N (?), INFA (A), IGT (?), ISIL (?), XXIA (?), LSTR (?), MAR (B), MWV (B), MEDI (B), MRK (B), MOLX (4:00 pm ET), NE (B), NUE (B), DGX (B), RHI (?), RYL (B), SNDK (A), SAP (?), SGP (B), LUV (B), SYK (A), SPWR (?), SYNA (A), TPX (A), TXT (B), BK (B), HSY (B), NDAQ (?), UNP (A), UPS (B), VRSN (4:15 pm ET), XRIT (?), ZHNE (A), ZION (A)
Apr 21: MMM (?), ACI (B), F (B), HAL (B), IR (B), OXPS (?), RSH (?), SLB (06:00 am ET), ERICY (?), WYE (?)
Apr 24: ACL (A), ACF (A), AMTD (B), ANAD (?), ATHR (4:00 pm ET), CAT (?), CHKP (B), CB (A), CNET (A), CNF (A), FDG (?), GOL (A), HAS (B), KMB (B), LNCR (A), MSPD (?), NFLX (A), NBIX (A), NVS (B), NTRI (A), OMM (A), PTV (A), PCL (A), RCII (A), ROH (B), SVVS (A), SLAB (B), SWKS (A), UDR (A), VTSS (A), BER (A), WCN (A), WFT (B), XRX (B), YUM (A), ZL (?)
Apr 25: ACE (A), AKS (B), AMZN (4:00 pm ET), AMP (A), ASN (B), T (B), ATML (4:05 pm ET), BJS (B), BXP (A), BYD (?), BP (?), EAT (B), BMHC (B), BNI (B), CHRW (A), CNC (B), CKFR (A), CME (B), GLW (A), DV (A), DBD (B), DD (B), ENWV (A), ENR (B), ESV (?), ENTU (A), EXTR (A), FISV (?), FRX (B), HOLX (?), IMCL (?), NDE (B), IM (A), ISSX (A), JCOM (A), JEC (?), JBLU (?), KIM (B), LLL (B), LH (B), LAB (B), LSCC (A), LCAV (B), LXK (B), LMT (B), MTW (A), MSO (B), MVK (A), MTH (A), ,CRL (A), MCHP (A), MIL (A), MUR (?), NOC (B), OXY (B), PCAR (?), PNRA (?), PCZ (?), PPP (?), PWER (A), RFMD (?), SANM (?), SCSS (A), SEPR (B), SIRF (A), SII (B), SSCC (B), SO (B), STM (A), SNV (?), TE (A), CAKE (A), SSP (B), MHP (B), SWK (A), TRAD (?), TRI (A), TQNT (A), X (?), VLO (?), VAR (A), VRTX (A), VFC (?), VMC (A), WDR (B), WWY (?), XL (A)
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.