Employment numbers were to be the star of the show this morning as the Fed has made it clear they were the most important numbers for their QE tapering decisions. They came in under expectations which gave the ES a lift into the DTG 60.75 level where it bounced, rotated, and then failed to reach the top. This was a pre-market short order flow opportunity. The ES started vacillating under the DTG 60.75 level into the cash open when after about 10 minutes, it started breaking down hard. A comment from Putin of Russia will support Syria with arms put fear into the markets and the ES started tumble through the DTG 52.25 level, DTG 48.50 level and DTG 45 level to bounce off the DTG 39 level. As price re-approached the DTG 48.50 level, I posted in chat that the 48/50 area should now be resistance and if it holds, the ES will probably retest the low of the day. Institutional selling came in strong just below 48 and price started moving down again. President Obama had started a press conference at the G20 and questions were focused on Syria. The ES bounced off solid support at the DTG 39 level bottom and started recovering as Obama spoke. Then CNBC gave the full context of Putin’s statement where he was stating that Russia would continue to support Assad’s regime in Syria like they have been and as I posted in chat, I suspected the ES would climb all the way back to where it started before the dive. After Obama’s press conference was over, the ES started picking up steam to the upside and broke through yesterday’s close and the pivot point. At this point, I posted in chat the area should now be support and a good place for a pullback long. The ES did pullback and order flow support the long. This is today’s example trade.
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