I'm trying to find a list of the top percentage declines, but so far I found a wire story that said the 9/17/2001 decline, 7.07%, wasn't even in the top ten.
I believe historically after a drop of this magnitude the probabilities favor a continued decline... Sure we will have some rallies , but overall the next month or two will see further lows being hit before we see a new high on anything. The questions always ends up being.. correction or bear market reversal? I dunno... I just trade what I see.
For current history I believe its 15th biggest drop percentage wise. I use anything after the 70s as before then everything was run very differently and I dont think you can compare. Regardless the 15th biggest drop out of over 7000 trading days is nothing to make light of. And if you go back and look at its peers the odds greatly favor a continued decline peppered with a rally here and there...at least for the next month or two.
Think ABC correction. We go down, we go up, and then we go down hard. After that, we start a new run unless the chinese market blows up which is a very distinct possiblity.
the 2-3 coming session i think will be key in order to define if we had a "one day huge rain" or this is the beggining of something. If we lost the low set yesterday it will hard to defend any bullish thought. Anyway, looking at the charts there is a possibility for a market recovering slowly. I prefer to think the market will finally go down, (according to today's close) and the huge volume involved on yesterday selloff