[BRIEFING.COM] Selling recently went from frantic to panic as the Dow actually dropped more than 500 points in just five minutes. That gap down put the Dow down more than 1,000 points to a two-month low and beneath its 200-day moving average. However, stocks quickly snapped back as computer trades clicked to buy to drive the Dow back up some 400 points in a matter of minutes.
The action was not the result of any particular news item, but rather a breakdown of technical levels and a wave of broad-based selling. The whipsaw trade has caused a surge in volatility, such that the Volatility Index is currently up more than 60%.