Trading Plan for 6/5

[pay]Pattern notes.
It’s all over, but the waiting. The last two hours’ narrow range was appropriate for pre-report anxiousness. The hovering at session highs without making any gains was appropriate for weak handed buyers. This doesn’t preclude Friday’s reaction to the Employment Report from gapping up, and it doesn’t preclude the reaction from extending higher. It’s just the less likely path.

Having ended the day pushing on Tuesday’s higher prior lows, the less likely bullish path would gap up above Tuesday’s highs. The trick for a rally to extend would be to extend the rally from there. This being a Friday, the open’s bias is likely to persist through the noon hour into early afternoon. Whoever gains traction from the open could dictate next week’s action.

Indicators and Internals.
Technicals either diverged negatively or simply did not confirm the last-minute tick up to a new session high. The comparison wasn’t extended to begin with, and the retest’s timing wasn’t going to prevent higher highs. Nevertheless, a new rally leg would require gapping up to overcome the inertia of Thursday’s close.

Friday’s opportunities.
The big news is May’s Employment Situation report. The fireworks is largely played out pre-open, but trending and reversals are still entirely possible when the retail crowd gets involved… Reminder: I will be available Friday until 11:00am ET, and then again if market conditions require. [/pay]