Yesterday was sloppy. A sloppy test of the 200DMA, while the rest of the market traded sloppier, even though it has already been killed much more than the averages.
I think it was a combination of hedge fund liquidation, option pressure and bears pressing.
When that pressure comes off, the market should rally.
The initial claims were finally a bit better, and you also had 148,000 less people collecting unemployment insurance than the previous week. But doesn't that just mean that their insurance just ran out? After all didn't 45 states have rising claims?
But I don't think it matters. It will be spun positively.
The bears had their fun, and now it's their turn to get frustrated by the market.