I would say "collapsed" is just a little overdone and sensational for a 120 point (1%) drop at the close of a very volatile week.
At weeks end, American investors face the prospect of all other world markets trading for one more day before their markets trade again. I would say Fri's close would be consistent and expected under the circumstances.
A common pattern on a lot of world stock exchanges this week has been morning gains followed by weak afternoons ... the psychology of that I presume is that no market (a gaggle of investors lol) is prepared to stick its neck out at the moment and close strongly, only to be potentially wrong footed by other world markets overnight.
It will take a few weeks of calming, decreasingly less volatile trading before future directions are clear imo. What I am sure of though is that world economies are not performing as though there is any pressing need for markets to tank.
Cheers poyndexter
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