There is no doubting the ferocity of this most recent market correction. Yesterday the action had a sell first ask questions later kind of attitude. Each bounce attempt was met with even more selling. The downside during the last hour of trade had that 2008/2009 feel.
Remember back then, flat or even positive days reversed lower in the afternoon, with the brunt of the selling coming in the last 30 minutes of the session. The DOW plunged 200-300 points on some days in the final 15-20 minutes of the day.
Futures are trying to rebound this morning, however the damage is done.
Look at the candles getting put in this month:
$CAT
$AMZN
$NFLX
$QQQ
Small caps remain the leader. Small caps were falling days before this market correction began, and they have yet to turn things around.
$IWM
In November 2016 days before the election the market was down some 9 sessions in a row. Small caps were the first to close green on the Friday before election day. The following Monday the market was up over 1%. Small caps went on to rally for some 15+ sessions. While I am not saying the same thing will happen here, I think a small cap reversal will help turn this rout into a recovery.