That is a decent description of what happened in the stock market yesterday. Every major index but the DOW went through their lows like a hot knife through butter. What continues to hold the DOW up is Exxon and Chevron. I have no idea why. The liquidity these two names provide must be getting a premium. All other oil and gas stocks are getting murdered as well. Because the DOW Jones is a price weighted index, Exxon and Chevron have the most influence of any two stocks in the index.
So what to today. If the market opens flat to up you think about adding to your short positions. If it opens flat to modestly down you do nothing. If it opens down 150 + or moves there very quickly you think about buying (short covering). The markets finished hideously yesterday both in price action and where they finished. The Dow finished at 7997. That is in the middle of nowhere considering major support was 8000 to 8100. Futures have been all over the place. Down over 100 points around 3 am and then close to flat about an hour ago. Jobless claims numbers just came out, and it wasn't pretty with the 4 week average initial jobless claims up to 506,500, futures are back to tanking mode. The market will be volatile today.
We are getting to the area, another 5% to 10% or so, where even I will start dipping my toe in the murky water. Right now, another bottom, and the associated bottom callers, are a long forgotten memory.