Good day! The divergence between the major indices was not as strong intraday on Thursday as on the daily charts heading into the day. The 20 day moving average in the SP500, NASDAQ and Dow Jones Ind. Ave. all hit early on in the day and held very well. We did see some selling out of the open into these levels, however, first starting with a small downside gap. The gap closed and the market pivoted lower out of the 10:15 ET reversal period, leading to slightly lower lows as the next reversal period hit at 10:45 ET.

By just barely breaking the prior low in the SP500, the index formed a 2B reversal. By 11:15 ET the market was coming back into morning highs. It pivoted just a few ticks under the highs before pulling back on very light volume into 11:30 ET. The volume helped to create a Cup with Handle formation on the 2 and 5 minute charts that broke higher into noon. The upside move kept going well into the early afternoon, making it all the way back to Wednesday's trading range before finally stalling.

Typically, such an extreme move in one direction takes some time to turn over. In order to do so on Thursday afternoon, the indices first had to start out with a slower downside move. Then after basing with the 13:00 ET reversal period, the base gave way and the downside pace once again increased. The change in pace meant higher odds for a continuation pattern on the downside which took place coming out of the 14:00 ET reversal period and lasted until the market came into strong support at the 15 minute 20 sma. From there on out it held the range that began just after 13:00 on the 5 minute charts until the close on exceptionally light volume. INTC's widely anticipated after-hours report could have had something to do with folks sitting on the sidelines into the close, but the congestion already occurring on the daily charts helped out as well.

Intraday the market is forming a 30 minute cup with handle. Still, the pattern is sloppy because the initial selling with the handle (starting around 12:30 ET) was much stronger than average. As a result, that pace needs to really turn over in order to be able to put in a strong upside breakout. The fact that the market did manage to hold in the upper half of the day's range going into the close leaves me more open to upside potential than I was heading into Thursday, but the NASDAQ is still suggesting that any upside would be slower than the drop over the last week and the daily SP500, as well as the NASDAQ, has room to pull lower. Due to these factors I will still be remaining more cautious until we start to see a more promising direction for a daily breakout.

Updates on positions I have been following: AAP from the $51.88 zone on the 4/25 hit new highs of $63.14. Trailing stop initiated for position trades. ASKJ has highs of $32.78 from the 5/18 breakout. Tight trailing stop initiated. Some hit Tuesday's afternoon. LCAV triggered a continuation on 5/20 over $41.50, higher than the prior day due to the gap. It hit highs of $48.63. Some trailing stops hit. CI triggered on 5/26 with the break of $97.55 and has highs of $103.02. Trailing stops now initiated. UNH from last Wednesday from the $49.40 zone has highs of $52.49 with some trailing stops hit. RT, GR, EL and OVTI are still holding their ranges. IGT is still of interest.s

Economic Reports and Events
Jun 10: Export Prices ex-ag. For may (8:30 am), Import Prices ex-oil for May (8:30 am), Trade Balance for Apr (8:30 am), Treasury Budget for May (2:00 pm)
Jun 13: -
Jun 14: Core PPI for May (8:30 am), PPI for May (8:30 am), Retail Sales for May (8:30 am), Retail Sales ex-auto for May (8:30 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
Jun 10: -
Jun 13: -
Jun 14: BBY (?), BMC (?), PIR (?)