Opening Play for Wednesday 6/4

6-3-2014 10-51-19 PMCommentary:

Good Morning Traders!

The index futures are tightly wound in front of Thursday’s much anticipated ECB meeting.  The DOW has a three bar triangle breakout pattern and may not wait for Thursday.  Ticks still put in a lower high and lower low.  A very negative divergence as this has been going on for 4 consecutive days now.

The Bonds certainly did not wait.  They have broken down and any reaction up will set up a GRAIL sale (bear flag).  The yield charts appear to have put in a major cycle low.  They are oversold here and can have a reaction back up to the 120 minute EMA.

The dollar index continues to work higher as well and is testing above a key swing high.  If it holds its gains, it can continue to work higher to the levels noted on the chart above.   If not, it can fall back into the middle of this lower range.    The weekly Canadian dollar is  turned down.  The Australian Dollar has a breakout triangle on the daily charts.  The British Pound has three pushes up on the weekly charts. The Yen is picking up downside momentum.  And the EC ….drum roll…fireworks on Thursday?

Have a good trading day!



Tradesheet from snagit