Trading Plan for 6/5

[pay]Pattern notes.
A last-minute bounce tested ESm 1380’00 and threatened to end the day in positive territory. A dip prevented that, but only that, as the cash session ended essentially unchanged from Tuesday’s close. If another downleg intends to inject itself anytime soon, then it should be without any further delay. Recent lows have been chipped away at enough either to produce another bounce to 1400’00, or else to allow a break. And a break at this stage would likely be steep and deep, targeting 1342’00 and 1335’00.

Indicators and Internals.
3-minute RSI was oversold at Wednesday’s 1371’50 low, which indicates that it will be retested, regardless of the interim bounce. Two attempts could have resolved the retest, but the unfinished business was left outstanding overnight to attract price down Thursday.

Thursday’s opening setup.
A pattern formed off of Wednesday’s highs whose initial selling pressure was substantiated by the session low. The last hour’s bounce either fulfilled a correction of the initial downleg – in which case Thursday’s open should decline quickly under 1375’25 – or else the bounce was the recovery’s first upleg, and Thursday’s open will gap up above 1385’25.

BOE and ECB interest rate announcements and Jobless Claims highlight the morning, and possibly also the session. Afternoon volatility should contract as price action becomes paralyzed by anxiousness ahead of Friday’s Employment Situation report.[/pay]