The main focus on Wednesday will remain on corporate earnings, crude oil prices and the technical factors within the market.

On the technical side, the intermediate-term indicators are still pointing to a sell side bias, while the short-term indicators are still pointing to a buy side bias but are nearing overbought territory. In addition, the Dow Jones Industrial Average, S&P 500 Index and Nasdaq Composite Index all closed above their four- and 10-day moving averages on Tuesday, but still closed below their 50- and 200-day moving averages. For the Dow and S&P 500, it was the 139th consecutive session in which they closed below their 200-day moving averages.

Due to the technical indicators, look for stocks to experience choppy trade on Wednesday morning with a slight buy side bias unless crude oil prices rise sharply during overnight trading and/or corporate earnings come in much weaker than expected. If the S&P 500 cannot hold above its key short-term moving averages during morning trade, look for stocks to experience profit taking during the afternoon. Conversely, look for stocks to move higher during the afternoon if S&P 500 can hold above its key short-term moving averages, most likely due to a drop in crude oil prices during the New York Mercantile session and/or positive corporate earnings.

The bond market should also experience choppy trade on Wednesday morning now that the benchmark 10-year note yield is trading above the key four percent level. If the 10-year yield holds above 4.08 percent during morning trade, look for Treasuries to continue their downward move with the 10-year note re-challenging the 4.12 level. A move above 4.12 percent should lead to a re-test of the 4.15 percent level soon thereafter. However, look for Treasuries to move higher during the afternoon if the 10-year yield breaks back below 4.08 percent during morning trade. That should lead to a re-test of the 4.05 percent level soon thereafter.