Wednesday's trading session was a volatile, but for XM Satellite Radio Holdings Inc (XMSR) it was fairly tame. The stock spent the majority of the day in a consolidation pattern with support at 13.24 and resistance at 13.34. A break through either resistance or support will give an inclination as to the direction of XMSR. It's possible that XMSR will continue the sideways pattern, but I doubt it.

Caterpillar Inc. (CAT) looks as if it has finally found a stopping point in relation to its recent downside price action. Previous support at 66 appears to be holding once again. The stock is also trading at very low RSI levels, suggesting that CAT is oversold.

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.