Good day! The market got off to a rough start as the new week began. Monday opened with a strong gap lower, but it was right into support from the close last Thursday in the SP500 and the 15 minute 200 sma intraday in the NASDAQ. The indices based along this support for the first 30 minutes of the day before breaking down into 10:00 ET. This closed the gap in the SP500 from Friday morning and took it into its 5 minute 200 sma support by the time the 10:15 ET reversal period hit.

The action into the morning was pretty bearish, but the strength of the support was enough to help turn the market over as the morning progressed. The downside pace changed as the market popped out of 10:30 ET and came quickly into its 5 minute 20 sma resistance. At that point the volume dropped off as the indices based along the resistance to form a small triangle going into noon. While not exceptional, it did lead to a closure of the morning gap in the NASDAQ which stalled the correction off lows and sent the market into a longer trading range going into the early afternoon.

Since the downside pace was much more gradual beginning at about 13:30, the range began to have a bullish bias intraday. This developed even more after a Phoenix in the form of a 5 minute Cup with Handle along the 5 minute 20 sma going into 14:30 ET. The breakout from that pattern triggered a larger 15 minute breakout. Even though the late day rally got off to a slow start, the Dow and SP500 were soon breaking highs and a small 1-2-3 continuation pattern on the 2-5 minute charts soon had all three indices at new highs on the day. The pace picked up dramatically and the move continued into the 14:00 ET reversal period, taking the indices back into price resistance from Friday's session. That price resistance brought the intraday rally to a close and the market pulled back for the remainder of the day.

All in all, the Dow Jones Ind. Ave. fell 13.96 points on Monday, while the NASDAQ closed down 1.98 points and the SP500 Index was down 0.86 point. This was pretty good given the extent of the downside gap at the start of the day. I'm still not seeing much for new larger daily patterns at the moment, so I'll be sticking primarily to intraday activity again. Monday's session saw a number of nice intraday setups in stocks on the morning gainers lists such as MATK, BOOM and ANSI, so hopefully that trend continues on Tuesday.

Updates: AAP from the $51.88 zone on the 4/25 hit new highs of $63.50. Trailing stop initiated for position trades. Some hit. CI triggered on 5/26 with the break of $97.55 and has highs of $107.34. Targets hit and trailing stops now initiated. RT from the $15.40-.50 zone hit highs of $16.75 before closing with a trailing stop.  GR from the $42 zone hit highs of $42.98. Support is now Thursday's lows. EL needs to hold Fri. lows.  USG from a break in $47.50 hit highs of $48.05 before it was closed with an adjusted stop under $46.40. SPLS is still of interest. SLXP broke out on 6/15 over $18.13. It has highs of $18.36.

Economic Reports and Events
June 21: -
June 22: -
June 23: Initial Claims 06/18 (8:30 am), Existing Home Sales for May (10:00 am)
June 24: Durable Orders for May (8:30 am), New Home Sales for May (10:00 am)
June 27: -
June 28: Consumer Confidence for Jun (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 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 21: CMC (B), DRI (?), JBL (A), LEN (B), KR (?)
June 22: BBBY (A), GTK (B), KMG (?), MWD (?), WOR (B)
June 23: ATYT (?), COGN (A), DLM (?), FDO (B), FDX (?), OVTI (A), RAD (?), SLR (?), TEK (A), TIBX (?)
June 24: -
June 27: NKE (B), PAYX (A), WAG (?)
June 28: APOL (B), EMMS (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.