The NQ100 has had the worst of the down action. AAPL liquidation continues as the true believers get pounded. Hedge fund managers are cashing up and are looking at competing with treasuries for returns in 08. Do not look for direction from the managers anyway, they never lead.
Bulls will have to hope that back and fill action does not turn into a rout and that the Fed/gov continues to pepper the market with gadgets. These gadgets have to establish a price for markets to build on. In 1987, the Treasury Dept. used the then MMI futures contract at the Board of Trade to enter the market with a massive buying program. Turning the arb turned the market. Though it may not be as easy this time, a financial cocktail of some kind is being considered.
