Good morning! Tuesday's session was a pretty slow one. The market's range I had been looking for going into the week continued with a lot more overlap than the prior several days on the 15 minute charts. Support and resistance levels held well throughout the range and we saw a number of intraday patterns in equities in the leading gainers for the day due to earnings news, but overall it was a rather slow day.

The morning began with a very slight upside gap which quickly filled. While there was a good deal of divergence between the indices with the NASDAQ weaker out of the open, the mid-day zone from the prior day served as price resistance for it as well as for the SP500. This led to a pullback to the prior day's lows in the NASDAQ at that 10:45 ET reversal period where it pivoted going into noon. The NASDAQ swapped places with the SP500 and Dow Jones Ind. Ave. by holding up well over noon with slower downside pace in the range while the SP500 and Dow both fell to new intraday lows before the SP500 came back into its larger 60 minute trend channel support.

Heading into the early afternoon we started to see the market turn over again. The 12:30 ET lows held well and the market popped. When the 13:00 ET reversal period hit, the indices held along the resistance from the prior 5 minute highs, creating a Phoenix coming out of a Reverse Head & Shoulders pattern in the SP500 and Dow while the NASDAQ broke higher out of its 15 minute triangle. The upside move continued strongly into the 14:00 ET reversal period, taking the NASDAQ to new intraday highs while the SP500 and Dow both came back into the morning pivots before slowing once more.

Given this strong upside pace on the afternoon correction off lows, I felt that we would continue to hold up for the remainder of the day. While the SP500 and NASDAQ were able to hold the upper half of the day's range, the Dow, which had been weaker all day, did have more difficult, forming a 5 minute Head & Shoulders going into the last reversal period of the day at 15:30 ET.

The market is looking more bearish intraday going into Wednesday. We have continued to see rounded highs and volume is dropping off. Plus the upside pace is becoming more gradual compared to the downside pace on the 30-60 minute charts within the range. Continue to use added caution on swingtrades. I have VAR from last Wed. hit new highs at $39.25 and is looking nice on the weekly charts. BCO is still of interest as a buy, but PX gapped down yesterday so I'd like to see it hold the range a bit longer now before looking at it again.

Economic Reports and Events
July 27: Durable Orders for Jun (8:30 am), New Home Sales for Jun (10:00 am), Fed's Beige Book (2:00 pm)
July 28: Initial Claims 07/23 (8:30 am), Help-Wanted Index for Jun (10:00 am)
July 29: Chain Deflator-Adv. For Q2 (8:30 am), Employment Cost Index for Q2 (8:30 am), GDP-Adv. For Q2 (8:30 am), Mich Sentiment-Rev. for July (9:45 am), Chicago PMI for July (10:00 am)
Aug 01: Construction Spending for Jun (10:00 am), ISM Index For July (10:00 am)
Aug 02: Personal Income for Jun (8:30 am), Personal Spending for Jun (8:30 am), Factory Orders for Jun (10:00 am), Auto Sales for July (12:00 am), Truck Sales for July (12:00 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
July 28: ATVI (A), ADPT (?), AET (B), ALA (B), AYE (B), AEE (B), AMX (A), AXL (B), AFR (B), AMT (B), ANDW (B), ADRX (A), AU (?), APA (B), AZN (06:00 am ET), AN (B), BLL (B), ABX (4:00 pm ET), BZH (B), BOW (B), BMY (?), BG (B), BR (A), BOBJ (A), CCJ (A), CDX (A), CELG (B), CTL (B), CEM (A), CIN (B), CCE (B), CTSH (B), CYH (A), CNX (B), CYTC (B), DENN (A), DHB (A), DTE (A), EMN (A), ELN (B), ECA (?), XOM (?), BEN (B), FMT (B), GTW (A), GMR (B), GNW (A), GGC (A), GP (B), GSK (07:00 am ET), GR (?), GRP (B), HC (B), HPC (B), IM (A), IRF (A), IVGN (A), JNS (B), JAH (B), JNY (B), KGC (A), KLAC (A), KLIC (B), LQI (B), LEXR (A), LOOK (A), LYO (B), MRO (B), MVL (B), MEE (A), MFE (?), MERQ (A), MET (A), MGM (B), MUSE (?), MSCC (A), MSTR (?), TUNE (4:00 pm ET), MLNM (B), NBR (B), NTGR (A), NWL (B), NXTP (B), NI (B), NOC (?), OLN (A), PHS (B), PAAS (B), PRX (B), PTEN (B), PENN (07:00 am ET), PKZ (09:00 am ET), PD (B), PWAV (A), PDS (B), PCO (B), PDE (A), PGN (B), PLD (B), QLTI (B), RTN (B), RGC (B), R (?), TSG (?), SAPE (A), SGI (?), SPIL (A), SPG (B), SOHU (?), STA (B), SYMC (?), SYNA (A), TLM (B), TNE (B), TERN (A), TRA (B), DOW (?), NDAQ (A), VSEA (A), WLP (?), WMI (B), WFT (B), WEBX (A), WEN (?), WDC (A), WFMI (A), XMSR (?), YELL (A)
July 29: AEP (B), APC (B), ADM (B), BHI (B), CVX (B), CZN (B), CEG (?), LEA (B), MENT (?), MCO (B), WBR (B)
Aug 01: BRKS (A), CECO (?), ETR (B), EOP (A), GPRO (A), GGP (?), HUM (05:00 am ET), LNC (A), MVSN (A), MMC (?), MXIM (A), OIS (A), PEG (B), SBAC (A), PFG (A), TWTC (A), UCL (?)
Aug 02: CTAC (A), AOC (A), AUO (8:00 pm ET), BMC (A), BORL (?), CDIS (A), CEPH (A), CHTR (B), COH (B), CMCSA (?), CVH (B), CCI (A), EMR (?), INCY (?), IACI (B), MAS (?), MBI (?), NTES (9:00 pm ET), PXD (B), PPL (B), PRTL (A), PDLI (A), KWK (A), Q (B), RNWK (?), RDC (B), SRE (?), SIRI /B(, SBL (?), THC (?), RIG (B), TXU (?), TYC (B), UNTD (A), UNM (A), UTSI (A), VPHM (A), VSH (?)

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.