General overview for 06/06/2016:
As anticipated last week, the wave C corrective cycle has developed to the downside and made a new local low. The pattern that unfolded in wave C is a zig-zag, so now the whole corrective structure on the bigger time frame might be completed as well. The market might be ready to change from the current wave progression to an impulsive one, but first it needs a breakout above the intraday resistance at the level of 121.89. Only if this level is clearly violated in an impulsive fashion, the bottom at the level of 120.81 will be confirmed as a long-term bottom.
120.56 - WS3
120.81 - Intraday Support
121.78 - Weekly Pivot
121.89 - Intraday Resistance
122.74 - WR1
Swing traders should close all their long-term swing orders as the market might be ready to establish a long-term bottom and reverse upward.