Good day! The Cup with Handle potential we were looking at going into Friday only managed to materialize in the Dow Jones Ind. Ave. before the weakness we were looking at the day before once again resumed. Even then, the Dow created its morning upside with a gap and then a small rally for the first 20 minutes or so of the day. As soon as the prior highs on the 15 minute charts hit, selling came in. The NASDAQ couldn't even manage that much show of strength. After the more gradual upside into the close on Thursday with light volume, it gapped down a bit and started selling off right away, picking up speed once the Dow turned over.

By 10:45 the first wave of selling finally exhausted itself as the market came into support from intraday action on Thursday. Despite the strength of the selloff, volume never materialized at the support zone. This meant that it still had a great deal of room to move. The rest of the morning was spent in a range since buyers were not anxious enough to create any real bounce off the prior lows. The base was even shorter than usual for such a drop as sellers took the opportunity to drive the market lower off of just the 5 minute 20 sma resistance.

The market headed lower until finally hitting equal move support around 12:30 ET when the market put in a move very comparable in price to the initial drop off morning highs. This equal move type of support is a strong one and the market held it well, falling into a longer into the afternoon. It tried to react again to the 5 minute 20 sma, but this time the SP500 and Dow were back at the larger price support from the daily range. Even though the SP500 and Dow made a slightly lower intraday low, the pace was much slower on the selling and only barely broke lows when the NASDAQ came into morning lows, created a 15 minute 2B in the first two and double bottom intraday in the NASDAQ. This corresponded to the 15:00 ET reversal period and helped to pop the market higher into the last hour of the day.

As you can see, we are dealing with the same type of market heading into the week as we had all of last week. The NASDAQ, which had been the quickest to rise last month, has also been the quickest to fall. While the SP500 and Dow, on the other hand, which had a tougher time towards the end of May, were not extended enough to drop in price when the NASDAQ finally stalled its ascent. The NASDAQ looks like it can pull even lower on the daily charts, as does the SP500. Both the SP500 and Dow, however, can just as easily take off on another upside breakout since they've been correcting to the prior rally for a number of weeks now. Intraday, the pace in the market has not been too helpful yet at identifying a breakout direction because we've had both sharp upside, as well as sharp downside moves. Typically the market will move more gradually in the direction opposite the way it plan on breaking just before doing so.

WAG is the only new stock that really catches my attention this week for a potential swingtrade buy on the triangle breakout. Here are some updates on positions I have been following recently: AAP from the $51.88 zone on the 4/25 hit new highs of $63.50. 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 It hit highs of $48.63 before trailing stops hit. CI triggered on 5/26 with the break of $97.55 and has highs of $103.80. Trailing stops now initiated. UNH from last Wednesday from the $49.40 zone hit highs of $52.49 before trailing stops hit. RT, GR, EL and OVTI are still holding their ranges. IGT is no longer of interest.

Economic Reports and Events
June 13: -
June 14: 8:30 am - Core PPI for May, PPI for May, Retail Sales for May , Retail Sales ex-auto for May
June 15: 8:30 am - Inventories, CPI, CPI core, Empire stat; 9:15 - Industrial production, Capacity utilization; 2:00 pm - Beige Book
June 16: 8:30 am - Jobless claims, Housing starts; 12:00 noon - Philly Fed
June 17: 8:30 am - Current account; 9:45 am - Consumer sentiment

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
June 13: -
June 14: BBY (?), BMC (?), PIR (?)
June 15: BSC (?), LAZ (?)
June 16: ADBE (A), CCL (?), GS (B), KBH (A), WGO (B)
June 17: CC (B)

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.