Oil Drives Global Markets Lower

Prices of oil fell sharply today after the allied forces joined hands again, this time in a price war against the rising cost at the gasoline pumps threatening any recovery in the US and abroad as the US, UK and European govts discussed releasing strategic reserves.  This hammered the commodity and weighed on global equities with the S&P barely holding onto the 1400 level due to a late rebound down 6.98pts or .49% and the DOW down 71.52pts or .54%.

Considering the stock rally seems way over-extended and completely separate from any reality in any dimension we know of, save for investor-bizarro land, we are not surprised to see selling in the indices at these levels.  That plus a lower than expected Durable Goods print gave investors globally the jitters this may be too good to be true.  Oil ended the day at $105.41 floating above key technical support at $104.67.

GBPUSD – Daily Pin Bar At Big Figure Plays Out

The cable formed a daily pin bar strategy yesterday which gave traders a good rejection play off the key level.  Today the selling continued with many of our forex price action course members getting in on this fantastic setup.  Price action hovered above the 20ema before finding buyers but any new corrective or timid stabs to the upside will have to face this key level again so watch for price action triggers up here for a possible sell at the big figure.

GBPJPY – Like Father Like Son

Just like its mother pair the GBPUSD, the GBPJPY also formed a daily forex pin bar setup right at the key level and prior yearly highs.  This was also discussed in our price action member forum offering a clean 2:1 reward to risk play which we and the others are now out of.  The upside level will still be under pressure medium term after JPY repatriation happens end of month so watch for price action triggers off the daily 20ema as buyers will likely want to get back long on pullbacks.