THE CLOSE

Markets down big in the last hour as we get the 500 point drop in the DJIA and a break of 1200 on the SPX- hopefully no one bought the morning nonsense - and the typical bullish rally after the down open.

5,000 net losers on the NYSE/NAZ';

NDX/OEX 20 GREEN;

VIX - higher by 23.6% at/near 31.7 with the SMA 10 about 30% below the current quote;

Volume pretty heavy at 1.8B shares with more than 20/1 to the downside;

Gold heading back to the $800 level and if the FED cuts tomorrow it could quickly be in the rear view mirror;

RSI (2)- levels on most indexes at/near 10;

OK- still looking for 1170 on the SPX as the 50% retrace probably gets a nice bounce in the market if it hits- probably not tomorrow but not expecting the markets to rally big from here either-