3:40 pm ET: What was so surprising about today's market action was not the fact that the economic data released earlier reflected the global slowdown but that this news hadn't already been priced in. Following the opening bell, the major averages plunged to support levels and luckily for the bulls, those levels held. The major averages are still clawing their way back and it appears as if they actually might close in the green except for the Transports (DTX) which are having a harder time.
Both the VIX and the Trin are falling from their earlier highs lending conviction to the bullish case. Buying pressure is increasing as the positive VWAPs are outstripping the negative ones by roughly a two to one margin (+70 to -35). Action in stocks has been very bullish with a lot of attention today being focused on media stocks, especially those hitting new highs: CMCSA, CMCSK, GCI, MJP, NWS, NWSA, and NXST. Note that this is part of the continuing sector rotation that we've been noting. That's all she wrote for now.