The intraday chart shows us more details:
Situation has not been changed too much - we are still waiting for confirmation or negation of the symmetrical triangle. There is short-term sell signal as the intraday trend seem to be reversed.
S&P500 closed -8.93% today, DJIA droped 7.7% (here). That suggest the direction for tomorrow. Watch Brian Shannon video here.
Hedge industry can be reduced even by one third of its size at the end of this year (here). Some of fund managers are cutting their fees in order to keep their customers. The hedge funds have large positions in derivatives market, therefore we soon can see increased volatility there.
There is an interesting chart in one of SeekingAlpha portal's article (here), showing bull/bear ratio in last two years:
It seems bear traders are overwhelming the market right now. According to Bull/Bear ratio theory the market it's at the bottom now. Nevertheless, remember currently there are always various theories and indicators, but the only thing that pays at the end it's price.
Sources:
[http://www.marketwatch.com/news/story/Hedge-funds-try-hold-back/story.aspx?guid={F8B916EF-A1B8-4F07-A8FD-F0E121FC4A10}]
[http://seekingalpha.com/article/108540-bull-bear-ratio-is-a-contrarian-indicator]
[http://www.marketwatch.com/news/story/Dow-slides-680-points-gloomy/story.aspx?guid={5190CA39-8F19-45F1-9E75-75B479F55D0F}]
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