The fate of this session was foretold before the opening bell, as the effort to crush the highflyers was apparent all week long. I think there is overreaction, although in the case of Amazon (NASDAQ:AMZN) it's been clear for a while the Street wants to see earnings. Of course, Jeff Bezos & Co have gotten a free pass for a long time, most of the stocks tumbling in the wake of this disappointment with AMZN only got a break for a few months.
Typically in this kind of environment, there's talk of double bottoms, which would be freighting but are the only way to resolve the issue of price discovery, and sate the appetite of some of short-traders.
The big news item that was completely ignored today was the University of Michigan Consumer Sentiment Index that came in above consensus at 84.1. It's the best reading since July 2013 and second best since July 2007 (current conditions matched its highest level since July 2013). While there's no impact on today's trading, this is the kind of news that could be a harbinger of better economic tidings.