Wednesday, May 6, 2015

'The Big Show' Condition - Taking Some Off the Table

There has been 7 new session lows without a three session pause and we might thus consider the bearish trend a little stretched.  Currently TYM is 13 lower to 127-00+.  This is a decent move in the Wednesday before the employment report (the 'Big Show').  We would note that the contract also reached a bearish objective of a 'head and shoulders' pattern.   While there is a chance additional losses are registered today, a situation we would not want to discount, history and experience suggest that outsized moves are relatively few in the two sessions prior to the employment report.  Those with profitable shorts might consider taking something off the table with expectation that the short can likely be reset at better levels. 

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