Whether it is the lack of any favorable news out of China (in fact, quite the contrary [6]), which the BTFDers on Friday were praying for, or the worsening of the global Ebola pandemic with not only a second confirmed case hitting Texas but panicky reports of Ebola infections from Boston all the way to Los Angeles, or simply the lack of any words of encouragement from the Fed, the Friday rout has continued into the early Sunday night trading, and as of moments ago, the December E-mini future dropped to 1880.5...
[7]
... taking out the August lows, and sliding to levels last seen in May.
[8]
The selloff for now appear mostly driven by yet another carry currency unwind, with USDJPY sell stops triggered in morning trade, according to an interbank FX dealer based in Sydney, cited by Bloomberg. The other carry pairs aren't doing much better either.
[9]
The good news: the S&P still has about 70 points to drop for the S&P500 to go red for the year, a luxury the Dow Jones does not have, as it is sliding ever deeper into the red for 2014.
But the most dramatic plunge continues to be in the Russell 2000 which just can't find any support, is back to mid-2013 levels, and at this rate will be renamed the Russell 1000 by early morning:
[10]
And whereas previously this kind of market Risk Off drubbing would be a perfect storm to send gold higher, for now the yellow metal is sitting very much unchanged from the Friday close. That will change soon, as either margin driven liquidations will force even more GLD paper selling, or finally the flight to safety will override the relentless commercial/central bank/BIS rigging of paper gold and send the price in any FX terms surging.
[11]
