The main factor in the day's range came from the size of the gap into the open. It was stronger than you typically see in the market as a whole, but with so much support hitting last week, the gap did not overextend the market. We did see a lot of resistance hit out of the open though that held the indices in. The SP500, for instance, gapped right into its 30 minute 200 sma resistance, while daily moving average resistance levels also held, along with prior highs in the Dow Jones Ind. Ave.

Over noon we saw a very slight upside breakout, but it was too early given the size of the gap. By afternoon the morning's lows were once again being tested when the breakout failed to hold the 5 minute 20 sma support. These lows hit around the same time as the 15:30 ET reversal period hit, which is the last one of the day.

Given the day's action, or lack thereof, it was a good thing that the market had pointed us towards more caution the day before. We did see some decent action intraday in a few stocks that were moving despite the overall market, but overall I spent a lot of time scanning and coming up empty-handed. I remain cautious heading into Tuesday as well but still have a slight upside bias on the daily charts for early this week. Since the market put in a  basing type of correction a few weeks ago, it is probable that this one has a bit more of an upside slant as I mentioned late last week. I still think that is pretty likely and that Monday's session is the beginning of such action. It stands a good chance, however, that trading remains choppier.

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.