Toni Hansen was hoping to see the 15-minute 20 sma hold as resistance past Monday's closing bell since 2-day trend moves that hold this resistance level often offer strong intraday reversals on the third day of the trend. Despite the move lower in afterhours trade, the 60-minute time frames are starting to look like a larger correction off support this week is possible.

The market has room for a bit of recovery action early on this week, but Toni Hansen's larger bias is towards continued selling by the end of the week

Toni Hansen is going into Friday's session with the expectation of highs holding within about the first 15 minutes of the day. She is then anticipating a correction with a pullback off highs throughout most of the day.

The index futures held the late-day reversal and continued higher into the early hours of trading on Thursday. This leaves the market looking bullish into Thursday morning. Toni Hansen is looking for the indices to test the 10- and 20-day sma resistance levels before again stepping lower.

Toni Hansen is still focused primarily upon corrective action coming down from the highs a few weeks ago. Corrections can last two to three waves. She is leaning towards three this time around with the second one currently under way.

Although the indices hit strong support mid-day on Monday, there is still room to try those lows if the momentum shift from Monday afternoon does not hold.

Toni Hansen writes that the indices are continuing to favor greater corrective action off highs on the 60-minute time frame into early next week.

Toni Hansen continues to expect more correction off the recent daily lows with greater daily overlap.

As the week progresses, Toni Hansen is still looking back to Tuesday's morning action as guidance. This points to continued upside this week, but with greater overlap from day to day in price action.

While the Dow Jones Industrial Average ($DJI) will have resistance at the 20-day simple moving average and have a more difficult time breaking the prior daily highs, the Nasdaq still has enough added strength that it may still see another slightly higher high.