You obviously weren't trading between 1998-2002. These reversals, plus 4%, 5% and even greater up/down days happened back then...
July 2002 This time it's much tougher to trade, the whipsaws are brutal due to computerization. 2001 ~ 2002 was easier, tapes are more jagged now.
Volatility like this was almost a daily occurrence from 1998 to 2002. 2004 to summer of 2007 were a sleepy period. Definitely crazy action, and a lot of money being transferred here among traders.