Update: South Korea has scrambled F-16 jets to its west coast.
It is time to see just how much WWIII is priced into this market. WSJ reports that the Koreas may have just crossed the line:"North Korea fired artillery at South Korea's Yeonpyeong island in the Yellow Sea off the countries' west coast Tuesday afternoon, setting houses on fire. South Korea returned fire, according to residents on the island speaking on South Korea's YTN television network. A spokesman for South Korea's joint chief of staff confirmed the exchange but didn't have details except to say "scores of rounds" were fired by the North." The response: S. Korean military says it is on highest non-wartime alert after the North's shelling of island.