Good morning!  After a slight upside gap into the open on Tuesday, the Nasdaq cup with handle on the 15 minute charts failed to trigger. Instead, the stronger bearish bias represented by the gradual upside pace into the prior afternoon in the S&P 500 and Dow Jones Industrial Average began to follow through. The downside pace increased dramatically once the 10:00 ET economic data came out, showing an unexpected rise in existing home sales by 0.3% as consumer confidence hit its highest level since May 2002. This created fear that the Fed will continue to increase rates despite recent beliefs to the contrary.

While this first move out of the numbers was the strongest decline intraday, a more gradual downtrend continued into the early afternoon. That first drop found support at the S&P 500's 15 minute 200 sma, while the Nasdaq hit Monday's lows at the same time. The correction off that support was rather rapid, taking the S&P quickly into its 15 minute 20 sma resistance within a matter of minutes while the Nasdaq and Dow rallied back into the morning breakdown levels. This stronger upside move made it more difficult for them to break to new lows into the 12:00 ET reversal period.

With only a slightly lower low at noon, the market again corrected well off the support. The 5 minute 20 sma and downtrend line intraday both held into 13:00 ET. Once again the upside was quick enough to keep it from moving well into new lows on the next breakdown. This was the third downside move intraday on the 5 minute charts and hence the market put in a greater correction out of that move for the remainder of the day. It was not much in terms of price, but rather a correction through time as the indices fell into a trading range for the remainder of the day, making trading higher risk into the close.

By the end of the day, the Dow Jones Industrial Average ($INDU) lost 53.07 points, the S&P 500 ($SPX) fell 6.37 points, and the Nasdaq Composite ($COMPX) closed down 3.08 points. The 60 minute charts are still looking at though they wish to move lower as the week progresses with the 20 period simple moving average on that time frame serving as resistance. With the rounding off at lows Tuesday afternoon we can see more upside into the morning first. Continue to pay attention to upcoming earnings reports for momentum moves and use caution on entering new daytrades into the 10:00 ET new homes sales numbers and the 10:30 ET crude oil inventories.

Economic Reports and Events
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)
Apr 27: Initial Claims 04/22 (8:30 am), Help-Wanted Index for Mar (10:00 am)
Apr 28: Chain Deflator-Adv. For Q1 (8:30 am), Employment Cost Index for Q1 (8:30 am), GDP-ADV. for Q1 (8:30 am), Mich Sentiment-Rev. for Apr (9:50 am), Chicago PMI for Apr (10:00 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 26: ABY (?), AEM (A), APD (B), AKAM (A), ALGN (B), ATI (B), ABK (B), DOX (?), AHC (B), AHM (?), ABC (B), AMKR (A), AMLN (?), APPB (A), AMCC (A), ARBA (A), ARRS (A), ASH (08:00 pm ET), AV (A), BHI (B), BDX (B), BIIB (B), BCGI (A), CDNS (A), CD (4:00 pm ET), CTX (A), CRUS (A), CDSS (A), CL (?), CYH (A), COP (?), CCI (A), CYTC (A), DENN (A), DO (?), DRE (A), ECA (?), ESLR (B), EXC (B), ESRX (A), FNF (A), FHRX (A), FE (B), FORM (A), HMC (?), HMT (B), IFX (?), INSP (A), KOMG (A), LEA (B), LSS (?), LPX (?), LSI (A), FLSH (B), HCR (B), MXIM (A), MXO (A), WFR (?), MENT (?), MNST (B), MRVC (A), NOV (B), NETL (A), NYB (?), NSC (B), NCX (?), ODP (?), PANC (A), PMTC (B), PEP (B), PTP (A), PYX (A), POT (?), PX (B), PLD (B), PHM (A), STR (A), RBAK (4:45 pm ET), COL (B), RDC (B), SCUR (A), SIMG (A), SOHU (?), SNWL (B), S (?), STTS (A), TASR (?), BNK (B), BA (B), FAF (B), TMO (B), TRID (A), WLP (06:00 am ET), WY (B), XLNX (5:00 pm ET), ZMH (A)
Apr 27: ARDI (A), ABB (12:00 am ET), EYE (B), AET (06:00 am ET), AAI (?), ALA (?), AYE (A), ALTR (A), APC (?), ANDW (?), APA (?), BZH (B), BEBE (?), BDK (B), BOW (B), BC (B), BG (B), CAH (B), CLS (A), CTL (B), CRDN (?), CCE (B), COGT (A), CMCSA (B), BVN (?), CNXT (?), CNX (B), CAM (?), CFC (B), DCX (?), DDR (A9, DRIV (A), DTAS (4:00 pm ET), DOV (A), EMN (A), ELX (?), FLEX (?), BEN (B), GTW (?), GGC (A), GSK (?), HC (?), HLIT (A), HET (?), HIG (?), IDNX (?), IKN (?), ILOG (10:00 am ET), IRF (?), ISRG (A), IVGN (?), JNS (?), K (B), KLAC (A), KLIC (B), LPNT (A), LIZ (B), LYO (B), MRO (?), MEE (A), MET (A), MGM (B), MSCC (A), MSFT (A), MLNM (B), MRH (A), MPS (?), NENG (B), NWL (B), NFX (?), NXY (B), NIHD (?), OI (?), OLN (A), OCR (B), ONNN (A), QLTI (B), RACK (A), RTN (B), ROK (B), R (B), SSTI (A), SPF (A), HOT (B), SPN (?), TNE (B), DOW (B), UHS (?), VSEA (A), WEBX (A), WEBM (A), WEN (?), WDC (A), XEL (?)
Apr 28: AXL (?), ARM (B), ATW (?), ADP (B), AVP (?), CCJ (?), COCO (?), CVH (?), CMI (B), GERN (B), TX (?)
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.