Good day! The market had a great day on Wednesday. The session began with a much stronger than average downside gap and, as we've seen many times in the past, this tends to be followed by an uptrend throughout the morning. Exceptions are when the gap breaks a trend line and triggers a larger reversal on a weekly time frame, and when the gap is the third such gap in a row. Neither applied in this case and the buyers stepped up to the plate nearly right out of the gate. My own trigger in the NQ came at 1890.5 at 9:33 ET. The first resistance level to hit was the 15 minute 20 simple moving average and it only took a few minutes for the market to make it to that level.

Following the initial rally, the market fell into a somewhat longer correction intraday out of the 10:15 ET correction period and pulled back slowly on declining volume into the 11:15 ET correction period. The volume then picked up slightly and the indices finally managed to close the morning gap before correcting a second time into noon. Once again the volume declined and once again the market broke higher out of the pullback. This brought the indices back to the previous day's highs on this third wave of buying into 12:30 ET, providing a completion to the morning trend move.

The market turned around a bit into the early afternoon. On a morning where the larger gaps close, the afternoon which follows will tend to be a lot more choppy and provide fewer opportunities. A nice little Avalanche pattern formed along the 5 minute 20 sma into 13:30 ET but I didn't have much of a bias once that 15 minute 20 simple moving average hit. Neither did the market initially, but the 14:00 ET release of the FOMC minutes took care of that!

Lately this release has been causing quite a stir intraday and after an initial flush lower, the market turned back around. The indices chopped around along the 5 minute 20 sma resistance, but then busted through it into 14:30 ET and kicked off another intraday uptrend that held into the close and took the indices into those previous day's highs that we had been watching for heading into the session. The resistance hit right as the session came to a close.







This push is what the market needed to again put in some new highs into the second half of the week. It's going to create some intraday extension, however, heading into Thursday, so I'd like to see some intraday corrective action off the highs in order to see some better upside follow-through on daytrades on that move to new highs.

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.