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We could rebound for a short term rally any time but this feels worse than over to me. I think we could easily be headed into a second recession. A bottom will not form if that is true until all the panic selling is out of the way. It won't happen until the Investors Intelligence Poll has more Bears than Bulls. Again these numbers update every Wednesday though much later than the market open:

http://www.schaeffersresearch.com/streetools/market_tools/investors_intelligence.aspx



Another hallmark of a market bottom it a high volume 90% upside day. Unfortunately yesterday was a 90% downside day on high volume. Panic selling can help form a short term bottom. Long tern bottom form after the selling dries up and all that is left is apathy.




If you will recall prior to the last market bottom in 2009 we had a lot of 90% downside days. I follow the downside days using data supplied by Yahoo and Briefing.com here on the left side of the page:

http://finance.yahoo.com/marketupdate/overview

What we are looking for to help us determine a long term market bottom is a lot of things like at least two 90% downside days in close proximity followed quickly by a 90% upside day. We got this in March of 2008:

http://caps.fool.com/blogs/90-upsidedownside-day-rule/39493

I posted this on March 11, 2009 which was the last actual long term bottom for the market:

http://www.siliconinvestor.com/readmsg.aspx?msgid=24392582

Today's 90% upside volume day, following right on the heels of yesterday's 90% downside day and low-volume retest of the January lows, suggests that we may finally have a bottom of some import here. Time will tell if the major indexes can take out the major resistance that lies ahead, but the preliminary verdict is a positive one.

http://www.internetnews.com/bus-news/article.php/3733511/Technical+Analysis+Fed+Gets+It+Right.htm

Long term bottom take a long time to form.They can be followed on long term charts. Right now there is no clear indication that we could form a long term bottom now. I fear that while we have not seen all the clear hallmarks of a market top previous to this current sell off that there is little reason to believe the market can rebound from here to new highs without further selling first.



As always JMHO, RtS