Here is a 30 minute bar chart showing day session e-mini trading.
Whenever the market becomes unusually volatile and then calms down I like to mentally put my thumb over the unusual activity to see if I can make sense of the rest. In the current situation it seems clear that the Black Thursday collapse and then the big up move the following Monday identifies the activity in the black dash oval as a possible aberration, a kind of mistake made by the market.
One clue that this interpretation makes sense is that the market has otherwise traded in well defined trend channels which I have drawn on the chart. As you can see the lower boundaries of these channels today are around the 1100 level. I also think it is worth noting that at 1104 the e-minis have dropped 9.2% from the 1216 high on April 26. Recall that the June-July 2009 and the January-February 2010 reactions each amounted to 9.2%.
Given these facts I think it makes sense to think of the drop from 1216 as a normal decline which is just reaching the limits established by previous declines in the bull market. So I think the ES is establishing what Elliotteers will eventually identify as the "orthodox" low of the correction.
The market is scraping bottom and the next big move from here will be upward.