Very wild swings in late afternoon, mainly becos of news relating to Fannie and Freddie, where rumour of Fed Reserve willing to open discount window to them until 2009, thereby allowing them to meet sufficient tier 1 liquidity reserves despite some $11bil losses in poor assets writeoffs.
Obviously, Bears are worried that a rebound is imminent given such a continuous selloff. The above rumour prompted an aggressive short covering, although, the indexes still ended in the red but off their intraday low
VIX reached a high of 29.3 but eventually settled at 27.5
Crude Oil rallied earlier in the day to reach an all time high of >$147pbl but ended under $145pbl.
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