The market will most likely have a melt down before it closes. Today does not qualify as a melt down even though many people may think that. In my opinion the market needs to hit the "circuit breakers" (limits) first. The circuit breakers according to the exchange are as follows:
Level 1 halt A 1,100 point drop in the DJIA before 2 pm will halt trading for one hour; for 30 minutes if between 2 pm and 2:30 pm; and have no effect if at 2:00 pm or later unless there is a level 2 halt.
Level 2 halt A 2,200 point drop in the DJIA before 1:00 pm will halt trading for two hours; for one hour if between 1:00 pm and 2:00 pm; and for the remainder of the day if at 2:00 pm or later.
Level 3 halt A 3,350 point drop will halt trading for the remainder of the day regardless of when the decline occurs.
Some additional points regarding these halts need to be made.
