Syria was the wildcard for today as the US Congress comes back in session and will start deliberating potential actions in response to their alleged use of chemical weapons on their own people in Damascus. However it seems the White House has offered a potential out for Syria’s regime; if they turn their chemical weapons over to an international body for destruction, the US would not strike Syria. Russia liked the idea and recommended that Syria’s regime take that deal. With no US economic data this morning, the markets were primarily focused on new information about Syria. China and Japan had good economic data reports overnight giving a bullish tone to the ES. As the ES opened, it continued to push higher and broke above it’s overnight range into the DTG 62 level where it quickly spilled a few ticks past the back before rotating down 4 points after which a short order flow opportunity unfolded. As I mentioned in chat, the opportunity was “iffy” given how deep it was [and it came after a 4 point rotation]. The bears would have to clear the VWAP area and break the morning’s uptrend. They gave it a good try, but ultimately, the DTG 62 level and VWAP became a rotational area where price grind-ed for the next couple of hours. The markets were waiting on Syria information. During lunchtime, word came from Syria that they like and would abide by Russia’s insistence to turn over their chemical weapons for destruction. This was the clue the market was waiting for and the bulls took the market up in a trend continuation fashion. Unfortunately the short opportunity was a loss and no other fading opportunities unfolded today.
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