Stock Market Futures Sell Off After North And South Korea Exchange Fire

Earlier this morning stock market futures were rattled as reports came in that North Korea launched dozens of rounds of artillery at a South Korean island near the two nations’ western border. Shortly after, South Korean forces then reportedly fired back. No matter how you look at this, it could be the start of a major conflict. I personally pray that this doesn’t become the next major war.

With the thanksgiving holiday nearing closer this Thursday, stock market volume is dropping but we still have some major European debt fears to overcome. The EUR/USD pair continued to drop on concern Ireland’s debt problems will spread to other euro-zone economies such as Portugal and Spain over the coming months – which I think is completely possible.

As for interesting chart patterns, the EUR/USD looks to be entering the last downside phase of a Bearish Flag Pattern. These pattern typically show a slight period of consolidation after a major move lower before continuing in the direction of the first move (in this case a move much lower).

On the Chart of the EUR/USD you can see we are half way there already. My target for support would be the closest Fibonacci Retracement level shown below.