Syria strikes effects on market are erased before the market opens.
2335 is major support, and the US strike only effected the overnight market by 9 points. Not that big an effect. The consolidated range from 2335 to 2360 is building pressure and we are looking for a breakout.
There is a descending short term bearish trendline from the swing high and a break above this will be a signal for either an extension of this move to new highs or a failure and turn to break the supporting 50MA.
Intra-day trading has been choppy and creating many short term possibilities.
Syria Strikes effects on Gold Trading
This is the first test above the descending trend line and the 200 moving average in a many months. I posted an article on price action for Gold on the last time we were going to strike Syria in 2013 read more.
Buyers did move in but on a very small volume, if there was going to be more fall out, I would have expected price to break through with more strength and follow through to $1300 area. Gold has to settl above 1270 to show strength at this point for a continuation on this direction.
If the volume had been higher I would have expected this move to give legs to a continuation. We will see at the close, but since China and Japan markets are closed, I doubt we will see the follow through.
Syria Strikes effect on Oil Trading
Oil futures came to $53 resistance and then dropped .71 to $52.29. The market has been rallying since the floor was put in on March 27 and this move up crossed the 200MA which should have been major resistance.
The Syria strike pushed price through the 200 MA and above the 50 MA with a close on the day just above them. We shall see if the retrace off the high and push back from sellers is enough for this to tunr and head back to $50 next week, consolidate between 52-53 or continue to the major trend line at 53.50.