Good day! This week got off to a pretty slow start. After gapping up into the open on continued strength from Friday's strong late day rally, the market managed to test prior highs from last week in the Dow Jones Ind. Ave. The 10:15 ET reversal period held well though as the market, exhausted from such a strong move, finally began to turn over and correct.

As you can see on the 5 and 15 minute charts, the correction off highs was slow and very choppy. I had a hard time finding much for intraday setups since the market seemed stuck in a holding pattern ahead of Tuesday's FOMC announcement. Volume declined as the market inched lower into noon. This reversal period held as the NASDAQ hit its 15 minute 20 sma support, but we didn't see much reaction to the support level. Instead volume continued to decline and the Dow and SP500 in particular based along these intraday lows which broke just after 13:00 ET to begin another selloff into the early afternoon.

The market saw a flush at 14:00 ET to exhaust the downside for at least the time being. Volume spiked as the Dow closed its morning gap and the market put in an equal move as compared to the initial selling from the morning. Since the pace of the selling was so steep, it meant a slower correction off the support zone, but it turned over a little bit as the market formed a small 5 minute cup with handle along the 5 minute 20 sma. This created an upside continuation pattern on that time frame going into the close, bringing the stronger Dow back to morning highs before the closing bell.

WLT and YELL, swingtrade shorts from last week, both have trailing stops in place. WLT is starting to round off at lows intraday and YELL gapped higher on Monday and based at highs into Tuesday, making it higher risk to hold over night. On the upside, PENN broke higher out of the pullback on the daily charts and has support at the 100 day sma.  AAP put in higher highs as a position trade from last Monday, but is looking to pullback on the daily chart for a week or so.  ASKJ is still of interest but needs to hold the 20 day sma support and the downside pace still needs to turn over since it is still too fast intraday.

On Tuesday, we have the Fed announcing rates in the afternoon. Typically the market starts with some upside action on a Fed day but as noon rolls around the risk really increases since most folks begin to lighten up or go flat ahead of the news. The reaction is very whippy and can take out even the most lenient of stops, so daytraders should be very careful and wait for about 15 minutes for quotes to stabilize if they want to be on the safe side.

Economic Reports and Events
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)
May 04: ISM Services for Apr (10:00 am)
May 05: Initial Claims 04/30 (8:30 am), Productivity-Prel. for Q1 (8:30 am)
May 06: Average Workweek for Apr (8:30 am), Hourly earnings for Apr (8:30 am), Nonfarm Payrolls for Apr (8:30 am), Unemployment Rate for Apr (8:30 am), Consumer Credit for Mar (3:00 pm)
May 09: Wholesale Inventories for Mar (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 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
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)
May 04: APCS (A), ALVR (B), ABV (A), APPX (?), AMT (B), AMKR (A), ADRX (A), ANPI (?), AQNT (?), ILA (B), ACLS (A), BEC (B), BEV (B), ÇDIS (A), CNQ (B), CI (B), XEC (B), CMS (B), CREO (A), DF (B), DVN (B), D (B), DUK (B), EXPD (A), FRP (B), FBR (A), GPRO (A), GNSS (A), HL (B), HUN (B), INCY (B), IACI (B), KEM (A), LAMR (B), MXO (A), NBL (B), PCG (?), PWER (B), PRU (A), PEG (B), QLGC (A), QSFT (A), RNWK (?), PKS (A), SYMC (?), TWX (B), TOT (?), UVN (A), VCLK (A), WON (?), WFMI (A), ZBRA (B)
May 05: ATVI (A), AES (B), ANR (?), AIV (B), BRL (B), BBI (?), BWNR (B), CVC (B), CPT (A), CLX (?), CPWR (A), CNO (B), CEI (B), CVS (B), DLTR (B), DISH (?), ENZN (B), FLR (A), FLYI  (?), FTO (B), GMST (A), GSF (?), HRP (B), ICOS (?), JNY (?), MFE (4:30 pm ET), MCK (A), NEW (B), PXP (?), PPL (?), PRM (B), ROIAK (B), RRI (B), RRD (B), TSG (B), SGMS (A), SINA (A), SUN (B), SCON (A), G (B), PMI (?), THE (B), TXU (B), VRX (?), VPI (A), WPI (A), WMB (B)
May 06: ASTM (?), NOV (B), OATS (B)
May 09: AL (?), CRAY (?), DCEL (A), DYN (B), FSH (A), FTI (A), GNTA (?), IIP (?), MEDX (?), PCLN (A), PVX (B), SONS (?), TSO (?)
May 10: ANR (B), ASYT (A), CE (?), CQB (B), CSCO (A), EAGL (B), KFX (?), MDG (A), MSSN (B), MYGN (B), NPSP (?), NTLI (02:00 am ET), SRP (B), MAY (?)

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.