After the worst risk-off day since the financial crisis, more selling is expected but strategists are so far unwilling to say the six-year bull market is on its death bed.
Stocks started Monday with one of the ugliest and most difficult opening selloffs in memory, and the dramatic move in the Dow was the biggest intraday swing ever.
The Dow was off 1,089 at its worst level, before recovering more than 800 points, but it finished the day 588 points lower at 15,871. The volatile trading was across asset classes, with some of the wildest moves in other financial markets, occurring around the stock market open.
"It was most acute in the currency market because I think so many people were misaligned in their positions. We just saw one of the sloppiest, most volatile New York opens that I can remember," said Boris Schlossberg, managing director of foreign exchange strategy at BK Asset Management. "Every single market, at this point, is totally interlinked by arbitrage. When there is a circuit failure in one, it just washes through the others. The currency market is no longer a gated community."