There are no more hiding places. All the funds that were hiding in energy and tech have gotten crushed. These kind of down moves don't come from rational sellers, but those that have to sell like LTCM had to sell in 1998. This is going to clear the decks and make way for a strong reflex rally. But not from lower levels. The last stanza is always the grandest and that final fall to reaching a bottom should be breathtaking ala 2002. Maybe 4 straight days where the indices go down 9-10% during that stretch. Not a 1 day capitulation but a capitulation that strings out over several days, scaring the heck out of everyone and robbing the sleep of even the most risk averse.