The stock market indices snapped back extending yesterday’s late run and closed with gains for the day, although in the last five minutes they did take back a bit of it.
The day started out with a little move down, and snapped back immediately to morning highs the first half hour. They backed off in an orderly stair-step fashion, held support, and then came on again in the afternoon a couple times. From there they could not get through resistance, but managed to do so late in the session before a last five minute pullback peeled them off the highs for the day.
Stepping back and reviewing the hourly chart patterns, the indices were up early, down mid-day, and then back up again in the afternoon to close with gains on the session.
Not sure if it was more than technicals so far. We’ll have to see what develops later in the week. This is a time to trade lively, without a bias, as the indices are likely to trade back and forth in a choppy fashion while things sort themselves out.
My Trades Today:
YM = ascending triangle minor degree balance area… this trade is working out so far and I still have the full position on. Looking for a breakout to 12207 where 1/3 can be sold and STOP adjusted.
6E= was minor degree balance area SHORT STOP out for a small loss… this was a small hedge to the YM LONG trade
Wednesday, June 6
07:00 MBA Mortgage Purchase Index
08:30 Nonfarm Productivity – consensus -0.7%, prior -1.3%
08:30 Unit Labor Costs – consensus 2.2%, prior -0.5%
2:00 Fed’s Beige Book
01:30 AUD GDP
08:30 GBP PMI
09:00 EUR Euro-Zone GDP
11:45 EUR ECB Rate Decision
No major earnings
ABM Industries (ABM) EPS 30c, revs $1.09B
Men’s Wearhouse (MW) EPS 54c, revs $594.68M
Pep Boys (PBY) EPS 2c, revs $702.86M
The ISM non manufacturing index came in at 53.7, slightly more than the expected 53.5. On Wednesday we will get oil inventories and the Fed Beige Book.