So far this is just a long awaited stock market correction, one that could have a lot further to go.
Analysts are predicting another dismal day of trading for Wall Street with some estimating a fall of 1,000 points for the Dow Jones.
Scott Redler, partner with T3Live.com, said the best situations for US markets would be a drop on opening followed by a reversal on large volume.
This move is likely to continue in European markets today.“The sharp plunge follows last Friday’s positive economic data from the US.
But the good economic news is not so good for bonds – they were sold off, driving yields on government debt higher.
Mr Eakers said: “The global sell-off in equity markets, which began last Friday, turned into a rout yesterday in the US, as the S&P 500 dropped a further 4.1%, suffering its biggest fall in six years.