Good day! The market had another strong day on Tuesday, following Monday's rally. The Dow Jones Industrial Average ($INDU) gained 93.58 points (+0.8%) on the day, while the S&P 500 ($SPX) rose 9.97 points (+0.8%), and the Nasdaq Composite ($COMPX) added 12.27 points (+0.5%). The open was rather unimpressive, but a lot of focus was directed towards the 10:00 ET U.S. consumer confidence data. This created some lighter volume to start the day, bit it picked up when the consumer confidence index rose unexpectedly to 104.5 in September, after hitting 9-month lows in August. The index was anticipated to rise to 103.7, but were boosted by falling gasoline prices. The inflationary aspect of the report also indicated a decline in expectations for the next year. The market took off sharply to the upside following the announcement.

The intraday reversal periods again held extremely well for the second day this week. Coming out of 10:15 ET, the market pulled back. The S&P 500 and Dow Jones found support at the 5 minute 20 simple moving averages, but the Nasdaq had a much more difficult time with gains throughout the session and pulled further back into its 15 minute 20 sma. These support levels hit with the 10:45 ET reversal period and the market corrected along the support until breaking lower into noon, which is one of the strongest reversal periods of the day.

The 12:00 ET reversal came off the 15 minute 20 sma in the S&Ps and Dow and congestion from the prior afternoon in the Nasdaq. Volume never saw a sharp increase to indicate a strong turn over from the highs, but the afternoon ended up being much choppier than the morning. After bouncing at noon, the indices based along the 5 minute 20 sma, creating a buy pattern that triggered around 13:30 ET. The S&Ps and Dow broke to new intraday highs, although there was a decent amount of overlap in price from bar to bar on the 5 and 15 minute time frames. This overlap and chop increased following the 14:00 ET reversal period. This is one of the main reversal periods of the afternoon, but in this case it just served to further impede the bulls and the indices were unable to shake the 5 minute 20 sma support that shadowed it into the close.

On the daily charts the bias remains bullish, but cautiously so. The indices are fairly extended at this time. The Dow is within striking distance of all time highs made in early 2000, and this is a significant resistance zone. The Nasdaq Composite, as mentioned yesterday, still has a bit more room to move before it hits more significant resistance, however, so there is still some wiggle room on the upside. I remain more cautious on entering longer term positions at this time. Nevertheless, we should continue to see stronger action intraday since a slew of economic data is still due out this week.

Note: I am currently working on a project that will have me away from the markets over the next couple of days. This column will resume again on Monday, so I hope you have a wonderful remainder of the week and weekend and will "see you" next week!

Economic Reports and Events
Sept. 27: Durable Orders for Aug. (8:30 am), New Home Sales for Aug. (10:00 am), Crude Inventories 9/22 (10:30 am)
Sept. 28: Chain Deflator-Final. Q2 and GDP-Final. Q2 (8:30 am), Initial Claims 9/23 (8:30 am), Aug. Help-Wanted Index (10:00 am)
Sept. 29: Personal Income and Personal Spending for Aug. (8:30 am), Sept. Michigan Sentiment-Rev. (9:50 am), Sept. Chicago PMI (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.
Sept. 27: MKC
Sept. 28: ACN, FDO, RIMM, TXI, TIBX
Sept. 29: GPN
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.