Yesterday, markets traded higher after the uncertainty of Fed Chairman Ben Bernanke's remarks regarding further interst rate tightening was relieved. The fact that yesterday was the biggest day for earnings, and the majority continued to meet or beat expectations didn't hurt either. The Dow, S&P, and NASDAQ all closed higher on the trading session.

Today, NASDAQ futures are trading lower likely due to bad earnings news from Microsoft. They missed estimates buy 1 cent and warned for the current quarter. The 10-year treasury yield has pulled back to 5.08% from yesterdays 5.12% (prior to Bernanke's comments). Crude oil has dropped to $71.31 per barrel as traders take profits after the rise to $75 per barrel, but gold continues to rally with current levels at $644.90 per ounce.

A few important pieces of data were released this morning. First, the Employment Cost Index shows wages increased 0.6% versus 0.9% expectations. This is positive news because the market reacts poorly to speedy wage inflation. Next were GDP numbers. GDP rose 0.1% less than expected, showing an increase of 4.8%. Consumer Sentiment reports at 9:45.

Brocade Communication Systems Inc (NASDAQ: BRCD) presents a setup that can be fairly lucrative from a percentage return standpoint. The stock has broke outside of its up trend and is now trading sideways with consistent support at 6. This is by no means a channel, but it does seem to be a solid support play.

Google Inc (NASDAQ: GOOG) stock really likes to mess with people. The stock comes out with killer earnings, gaps up 40 points, and has the majority thinking it's time for it to continue to rise to the 500 level. Well that may happen sometime soon, but as for now it looks like GOOG has a little more downside action ahead of it.

Since gapping up after their earnings report, GOOG has gradually moved lower filling the gap more and more each day. It looks like today may be the day it finally fills it all the way. The fill of the gap started with a 45 degree downtrend, then turned shaper into an acccelerated down trend. Four more points and the gap is completely filled.

Andy Swan is co-founder and head trader for DaytradeTeam.com.  To get all of Andy's day trading, swing trading, and options trading alerts in real time, subscribe to a one-week, all-inclusive trial membership to DaytradeTeam by clicking here.