Mr. Market is having fits, up 1000 yesterday, down 500+ today
As we said in a previous post Mr. Market is an unstable fellow and sometimes he gets downright wacky. When the market starts making these kinds of moves usually the best bet is that the volitility will continue. (Untill it doesn't.) So hold on, we'll likely see more jagged movement on Wall Street as Mr. Market figures out what kind of medium term mood he's in.
...market veterans warn that massive, one-day rallies are often more characteristic of downturns, occurring as selloffs lead to significantly oversold technical conditions that leave markets ripe for short covering only to give way to renewed selling, once the frenzy of forced buying is exhausted. Investors who short a stock are essentially betting that its price will fall by first borrowing the shares but those traders can be forced to buy shares back if prices suddenly swing higher, which, in turn, can amplify price swings.