Good day! As the trading week progresses, the market has continued to chop back and forth on the 60 minute charts, swinging from highs one day to lows the next. Tuesday began by holding the range from the prior day, pulling first back to the lows of the range, then to highs before the SP500 and NASDAQ broke out of the range and into price and moving average resistance on the larger daily charts. The Dow had a tougher time and helped the market time highs by holding Monday's resistance. The SP500 also hit its 30 minute 200 sma at the same time. This led to a nice pivot into the 11:00 ET reversal period.

Coinciding with the market resistance, the ES EMini quotes and data feed crashed. While this didn't really affect individual stocks, it did mean a number of people got stuck since it didn't open again until 13:30 ET.  The initial pivot was followed by a base along the 5 minute 20 sma which broke and led to a steady selloff for the remainder of the day. Without strong volume over noon, there wasn't much to exhaust the selling and each level of support was only met with yet another bear flag.

The support level were pretty easy to time since we started seeing volume spikes on the smaller time frames at each level. The prior day's lows were the first main support at 13:30 ET. This led to a bit longer of a correction than we saw up to that point to the selling, but it stalled at the 14:00 ET reversal period when the market came into 5 and 15 minute 20 sma resistance.  The 15:00 ET reversal period saw the next correction on the 5 minute charts off lows, but it stalled at prior 5 minute highs and wasn't able to hold onto its gains either. (Note: I use the term correction in the generic sense to mean a correction of the prior move. Hence a downtrend corrects by basing or pulling higher and an uptrend corrects by basing or pulling lower.)

This action is pretty nice for the shorts we've been watching because it is looking like the market is going to break lower on a daily bear flag. Ideally the base on the daily charts will be comparable to that of late March, early April and we'll see an intraday short setup form on the 15-60 minute charts as well. AET, WLT, YELL and UVN are the main shorts I am looking at from yesterday's letter. SYMC also has potential.  PENN and TIVO are still holding up pretty well as longs, but I want TIVO to hold the $6.00 support zone. AAP is doing well on the weekly charts while ASKJ has yet to trigger.

Economic Reports and Events
Apr 27: Durable Orders for Mar (8:30 am)
Apr 28: Chain Deflator-Adv. For Q1 (8:30 am), GDP-Adv. For Q1 (8:30 am), Initial Claims 04/23 (8:30 am), Help-Wanted Index for Mar (10:00 am)
Apr 29: Employment Cost Index for Q1 (8:30 am), Personal Income for Mar (8:30 am), Personal Spending for Mar (8:30 am), Mich. Sentiment-Rev. for Apr (9:45 am), Chicago PMI for Apr (10:00 am)
May 02: Construction Spending for Mar (10:00 am), ISM Index for Apr (10:00 am)
May 03: Factory Orders for Mar (10:00 am), Auto Sales for Apr (12:00 am), Truck Sales for Apr (12:00 am), FOMC policy announcement (2:15 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 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 27: APD (B), AKAM (A), AGN (?), AHC (B), AMKR (A), BUD (?), ARRS (A), ASKJ (?), BHI (B), BDX (B), CDN (?), CTX (A), CHIR (A), CRUS (A), CTSH (?), CL (?), CYH (A), COP (B), CEG (B), CORI (A), COCO (B), DO (B), DRIV (A), DRE (A), ECA (?), ETS (A), EOG (B), EOP (A), ERES (A), GRMN (B), GMR (A), GRP (B), HP (B), HMT (B), ISSX (A), ISIL (A), JDSU (A), JP (A), KCI (B), KOMG (A), LAB (B), LPNT (A), LPX (B), LSI (A), MCHP (A), MUR (A), NBR (A), NEM (?), NSC (?), ONNN (A), OKE (A), OPWV (?), PMTC (B), PD (B), PCLE (A), PLUG (B), PX (B), PHM (A), STR (A), COL (B), RSAS (A), SANM (A), SEBL (A), SKM (B), SWKS (A), SOHU (A), SBUX (?), STN (?), SPRT (A), TIN (B), BA (B), TMO (B), TDW (B), UPL (?), UMC (B), UHS (?), VAR (A), VZ (B), VC (B), WLP (06:00 am ET), WON (A), XEL (B)
Apr 28: LEND (B), ADPT (?), AVO (B), AET (B), ALA (?), AYE (A), AGI (?), AEE (B), AEP (B), APCC (A), ANDW (B), APA (B), AMCC (B), AZN (?), AN (B), AVT (?), BLL (B), ABX (B), BZH (B), BDK (B), BMY (B), BG (B), BNI (B), BOBJ (?), CCMP (B), CELG (B), CTL (B), CRDN (B), CIN (B), CCE (B), CMCSA (B), CCI (A), CSX (B), DCX (?), DVA (B), EMN (A), ELN (B), ENCY (A), ESLR (B), XOM (?), FLEX (?), BEN (A), FMT (B), GTW (A), GNW (A), GP (B), GSK (07:00 am ET), GFI (?), GR (B), GW (B), HC (?), HIG (A), HPC (B), IDNX (?), IM (A), IRF (A), IVGN (A), IRM (B), K (B), KLAC (A), KLIC (B), LEXR (A), LIZ (B), LOOK (A), LYO (B), MRO (?), MVL (B), WFR (A), MCRL (A), MSCC (A), MSFT (A), MLNM (B), MGAM (B), NTGR (A), NWL (B), NFX (B), NEWP (?)NXTL (B), NXTP (?), ORI (?), OLN (A), PHS (A), PAAS (A), PRX (B), PTEN (B), PLAY (A), POZN (B), PCO (B), PDE (A), PGN (B), PLD (B), QLTI (B), RTN (B), RSG (A), RD (02:30 am ET), SFNT (A), SAPE (A), SPG (A), SIRI (B), HOT (B), SU (B), TRA (B), DOW (B), EL (B), TTN (B), UDI (B), UCL (?), VSEA (A), VNO (B), WMI (B), WEN (?), UBET (A), ZRAN (A)
Apr 29: AMCS (?), AU (B), ADM (B), CCJ (?), CAH (B), CNP (?), CVX (B), CCU (B), GERN (B), KSE (B), NI (B), SWN (A), SPF (B), SPN (B)
May 02: AVP (?), CECO (A), CTIC (?), CHK (A), CTV (A), ECLP (B), GGP (A), GLG (?), HUM (05:00 am ET), OSIP (A), PKD (B), POG (A), PRTL (?), RT (A), SYY (B), TNE (B), DTV (B), PFG (A), TSN (B), UPCS (A), WCI (B)
May 03: ACAS (A), AFR (B), AOC (A), ARM (B), BRKS (A), CMX (?), CEPH (A), CHTR (B), CBB (B), CZN (B), CVH (B), EMR (B), GGB (B), HNT (B), IDTI (?), LVS (?), LOUD (?), MACR (A), MMC (B), MAS (?), MXIM (A), MBI (?), MET (A), PKZ (?), PXD (B), KWK (A), RNR (A), SWY (?), SKE (?), STA (B), SBL (A), TLM (?), TKLC (A), THC (B), TERN (A), RIG (B), TRN (A), TYC (B), UNTD (A), UNM (A), VRTS (?), VSH (B)

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.