Huge sell off. The mother of all sell offs followed by a sell off.
Can't remember there being a huge plunge on the Dow on Friday. It gave up 40 points and recovered them twice in the day. If the Dow had lost 200 points and not managed any sort of recovery then I would start thinking in terms of a plunge. A couple of 40 point swings on the Dow on an option expiry day is not unusual.
I expect the reaction to the news to be muted. I suspect the market would like to end the year on a high. Having said that I opened the first part of a short on the Dow on Friday. It will be run with a tightish stop as I think I may be a bit premature. Its not a fundemental short its a trading short. The Dow has put on 600 quick points - I'm looking for it to give some of those back.