China cancels one little coal order and the markets go into a spasm.
Oil is down below $61, US equities are testing the neckline of a head and shoulders on the S&P charts around 877 and the JPY is surging as safe harbors are suddenly in very sharp demand. Gold has broken support in the $912/915 region and trades at $907.
EUR/USD is at 1.3875. holding above session lows at 1.3860. Sovereign bids have been rumored at 1.3850 while technical support is at 1.3825. 1.3800 barriers are rumored and could prove to be a magnet if things really fall apart. 1.3825 is the medium-term downside objective.
