Good morning! I hope you had a wonderful holiday week! After a slow week of trading, things should pick up considerably beginning Monday and Tuesday. The market has been creeping higher after several weeks of congestion, but has lacked any significant momentum. This has created a bit of a rounded high on the 60 minute charts, particularly after Friday's shortened session which left the Dow Jones Ind. Ave. ($DJI) lower by 46.78 points, the S&P 500 down 5.14 points, and the Nasdaq Composite down 5.72 points. Gold was one of the few sectors that actually managed to post gains on day.

Friday began on a sour note. I guess too many people ate those HoneyBaked turkeys and hams that were recalled... the day AFTER Thanksgiving... opps.... Being under the weather following my venture across country the week before for the trader's expo, I am happy to report that I had no (additional) ill side-effects from my Thanksgiving dinner of soup and NyQuil. =) The market tends to bounce back quickly from extreme opens, however, and made light of its opening weakness, bouncing back quickly. The Nasdaq showed the most relative strength, filling its gap within just a few hours of trading. The S&P 500 and Dow had a more difficult time, although they still managed to close the gap considerably during the morning trading. As they came into the congestion from Wednesday afternoon and the Dow's 5 minute 200 sma though, they no longer had enough stamina to keep up the ascent. The resistance held and the indices retraced into noon.

The morning's upside was made with a lot of overlap, but with a steady trend channel until just before 11:30 ET. This allowed for a more rapid correction once it hit coming out of 11:30. The market was able to give back approximately 50% of its gains in the Dow and S&Ps and retraced to the 38.2% Fibonacci level in the Nasdaq before finding some support with the 12:00 ET reversal period. At that point the indices fell into a small trend channel along the support as volume declined, creating a short pattern on the 5 minute time frame that triggered at about 12:30 ET and continued into the early close at 13:00 ET.

This week is packed full of economic releases. Most traders will also be back to normal work hours. There is often a bit of optimism following the holidays that creates a lot more action, so I am expecting things to pick up considerably. I do not, however, have a strong market bias. I did a lot of scanning Sunday evening and found very few decent swingtrade setups on the daily charts. Some stocks like HTCH continue to look higher, but they lack the core buy setups that often generate momentum, so we're going to have to wait to see if the shorter intraday time frames can bring this about. The steady upside of the past couple of weeks has been punctuated by rapid intraday corrections, and this can easily lead to a more significant daily correction off highs, so my focus this week is going to be on the smaller intraday time frames.

Economic Reports and Events
Monday: -
Tuesday: Durable Orders for Oct. (8:30 am), Consumer Confidence for Nov. (10:00 am), Existing Home Sales for Oct. (10:00 am)
Wednesday: GDP-Prel. and Chain Deflator-Prel. for Q3 (8:30 am), New Home Sales for Oct. (10:00 am), Crude Inventories 11/24 (10:30 am), Fed's Beige Book (2:00 pm)
Thursday: Initial Claims 11/25 (8:30 am), Personal Income and Spending for Oct. (8:30 am), Chicago PMI for Nov. (10:00 am), Help-Wanted Index for Oct. (10:00 am)
Friday: Auto Sales and Truck Sales for Nov. (12:00 am), Construction Spending for Oct. (10:00 am), ISM Index for Nov. (10:00 am)

Key Earnings Announcements
Monday: DCI
Tuesday: AMWD, JTX, RTLX, SKIL, ARO, DBRN, RSTO, SIGM, and LNUX
Wednesday: DSW, OPSW, TIF, CHS, SNPS, and TIVO
Thursday: DLM, HNZ, MOV, MGAM, SFD, FNSR, HRB, ISLE, MCDTA, OVTI, and UNCA
Friday: KWD, and WMG
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.