The potential conflict with Syria was on trader’s minds as the US stock markets opened. We did have Pending Home Sales and the Oil numbers to give traders some economic influence, but they seemed secondary to the notion of not if, but when there would be a strike on Syria. The European session erased the Asian bullish session overnight and the ES was headed back towards it’s overnight lows as the cash session opened. After a quick blowoff bottom, through the DTG 26 level, the bulls took control and started grinding price higher despite the backdrop of impending conflict. The ES double topped twice in the wide DTG 31.25 level. The first was on weak volume making it not worth trading, but the second was near the overnight high which looked like a good place for a short. Unfortunately, the bears could not get much traction and price eventually continued it’s upward climb. After the lunch hour, the ES reached the DTG 37.75 level where it unfolded with the best looking short opportunity of the day and today’s example trade.
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