That's not good. Volume has been heavy in major ETFs like the SPDR S&P 500 ; there were heavy volume attempts to hold the S&P at 1400 right after 10, but when it dropped below that shortly before 11am ET volume again picked up.
Bottom line: anyone who has bought stocks today has gotten trapped. Many traders who trade on a daily basis bought earlier looking for a mid-morning bottom, followed by a bounce off the bottom. That is not happening. (Read more: Stocks Dive 2%; Dow Skids 300, S&P Breaks 1400)
Will the calvalry come to the rescue and reward everyone who bought them? There's still time, but the longer it takes, the more likely it becomes that everyone takes a loss and dumps their stocks.
So instead of a run to the sun, with stocks going up into the close, you could have a dash to cash.
Why the pessimism? Some are simply disappointed and disillusioned — it's hard to describe the dislike that Obama engenders among many on Wall Street. Then there's this comment from a trader: "also don't forget that tax selling now has a HUGE implication...15% cap gain tax is like a dinosaur..."
(Read more: Dismayed at Obama Win but…Good for Stocks: Gartman)
And, finally, I really do hate to bring up Apple, but at 10:50am or so, Apple saw a volume surge and moved down as it hit $564. What's that. That is exactly a 20 percent correction from the historic high of $705.07 on September 12.
One cause for hope: the market appears to have bottomed exactly as Europe closed at 11:30am. That would suggest much of the selling has come out of Europe.
—By CNBC's Bob Pisani
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