Futures limit down during the night, fist fights on the floor of the CME as traders argue to get a new low print of 835 in for the S&P, and a new high for the VIX (the so-called fear index).. what does all this mean?
On balance, and absent any new catastrophe.. it's all looking pretty hopeful. If the market rallies this afternoon and remains above it's intra day lows from earlier in the month, then the buyers we have seen particularly in metals, railroads etc. this morning could have the best of a 'santa claus' rally in the near term. It's also noticeable that the Financials - which got us here in the first place - have held above their recent lows.
So equity-wise we might see a bit of a rally (complete with double bottom on the chart) which will give us all a chance to offload stocks before the real drop begins.... on the other hand if we retreat this afternoon and break the recent lows...