The reality is that aside from a very timid investment climate, it
looks like this is nothing beyond a bit of pressure being relieved
from a market that has been so tame for so long. Let's face it, the
fact that China had a moderate meltdown last week is not cause for
panic here.

The NYSE is clearly going to have their hands full with figuring out
what happened on Tuesday. Bad tick, hybrid system failure or operator
error? Either way, it looks bad and that is all that we had to see.
Add the bear camp getting a bit of a benefit and providing more
pressure and we have  recipe for a short term correction that should
bounce back just as fast.

There is no solid reason for this 600 point move and once we realize
that, it will be too late to invest becaseu markets should spring back
faster than you can whistle Dixie.

DO NOT get caught up in the hysteria..

Andrew Horowitz
http://www.thedisciplinedinvestor.com/blog

Checkout the Podcast about this topic.... !
http://www.thedisciplinedinvestor.com/blog/2007/03/02/tdi-podcast-e1/

There is one major reason why markets may not recover 'just as fast':
slowing profit growth.

18 quarters of double digit earning growth are predicted to end this
quarter.  It may just be the chinese-induced drop that sobers the
market view of where we are headed realistically, slowing growth, at
least for now....

Don't get me wrong, I think we'll recover, we always do, I just think
it'll be months rather than days.

I agree with you.  Panic never made anyone any money.  The bottom was
tested thursday.  It held!  This is a good sign, and would imply a 50%
chance that this will hold as the bottom.  If not, the correction
could go as high as 10%, or around 11400.  If you are a buyer, I would
look at defensive stocks first.  Finanacials will probably bottom in
about a week or so, and the rest of the market within a month.  If you
are not looking for defensive type stocks, then I would recommend
waiting until the end of March for financials, and early April for the
rest.