Yesterday was the first time since last Wednesday that the market did not close on its lows. What triggered the bounce back exactly I can't guess. NASDAQ futures locked down, I know that. I also know that we're sitting on the 10% drop line as of today's close in the S&P 500; that's about where a major correction will end up, so that may be part of it. And there's chart support about a year and a half back - it's old, but the S&P hung out where it bounced back up for a while, so a fair number of trades might be hanging out there.
But all that is just a first glance. Overnight, Shanghai opened with its third straight "gap down" opening - opening well below the trading range of the previous day. It's currently bouncing around down 7.8%, and at another daily low, heading into the close.
The amazing part about Monday was that the DJIA opened(!) down around 1,100 points. Still, that would've been, what, around 7.4%? Something like that. By points, it's an intraday swing record. By percentage, it's not even close - Black Friday in 1987 was much, much larger, an over 20% swing. But the futures movement was just plain goofy - add all the ups and downs together and you end up with 4,500 points in zig-zags.
European markets have just opened up across the board. Let's see if this slows the rout a bit. In the meantime, have a different kind of nightmare fodder.