Good morning! The market was all over the place on Wednesday, beginning with a gap higher into the open. The Commerce Dept. reported an upside revision to the gross domestic product report to a 2.2% annualized pace, not only showing stronger growth than the initial 1.6% estimate, but beating economist's 1.8% expectations for the revision. The upside gained some strength following the 10:00 ET homes sales data as well. Even though new home sales fell 3.2% in October, it helps support a push for a rate cut by the Federal Reserve in its next session.

After moving modestly higher following the 10:00 ET data, the buyers again came in at 11:00 ET following a low-volume correction from the early morning highs. The Nasdaq experienced the sharpest retracement into 11:00 ET and it had the most difficult time pulling back up off the opening lows, while the Dow and S&Ps climbed well into new intraday highs. The momentum after this, however, began to wane and the next correction into noon was unable to break free of its mid-day support. The indices soon cleared the 5 minute 20 sma support to take the Nasdaq back into morning lows.

The market continued to head lower until 13:30 ET. Volume picked up at that point as the market came into opening support in the Dow and S&Ps and into support from the prior day in the Nasdaq. The market reacted more strongly to this level than I had been anticipating, pulling back up rather quickly into the 5 minute 20 sma. The pace continued to turn over by basing along that resistance level before breaking sharply to the upside out of 14:30 ET, after showing very little initial reaction to the Fed's Beige Book showing slight improvement in economic conditions over the past month. This reversal was able to help bring the indices back into their early morning highs.

The Dow ($DJI) gained 90.28 points (+0.7%), the S&P 500 ($SPX) gained 12.76 points (0.9%), and the Nasdaq ($COMPX) rose 19.62 points (0.8%). By retracing off Tuesday's lows by more than 50% in the S&Ps and about that in the Nasdaq and Dow, the market is now showing greater favor towards forming a triangle on the daily charts. The S&Ps might be able to form a bit of a trap with a slightly higher high, but the the Nasdaq will find resistance just shy of those prior daily highs and will have a difficult time busting that level without another pullback or base.

Economic Reports and Events This Week
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 This Week
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 and Briefing.com. 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.