Volatility continues. After a 3% bounce on the S&P 500 (NYSEARCA:SPY) and a very respectable 3.6% bounce on the Nasdaq (NASDAQ:QQQ), the dead cat bounce that was today ran out of spring.

It was once again the final minutes of trading that did the rally in, as the Dow Jones Industrial Average (NYSEARCA:DIA) crashed 3.3% in the final hour. It appears short selling traders are getting an early Christmas.

Oil also made a respectable comeback today, rising close to 2%, though oil stocks still saw the pain of the final hour collapse, as Exxon Mobil (NYSE:XOM) lost close to 4 percent into the close. Gold (NYSEARCA:GLD) and precious metals on the other hand did not respond positively to the sudden volatility at the end of the day, with the gold price ending the day down 1.2%.

All eyes will be on China (NYSEARCA:FXI) tonight, as trading opens in Shanghai in a few hours. The Nikkei had an equally volatile day yesterday preceding US market open, trading in a range of over 6% and ending down 4%. If the recent patterns continue, we should see a rise in the Euro (NYSEARCA:FXE) and corresponding fall in the US Dollar (NYSEARCA:UUP) along with a general collapse of emerging market currencies in the next 24 hours.

Finally, bonds got hammered today despite the negative close in equities. The iShares 20+ Year Treasury Bond ETF (NYSEARCA:TLT) is down 3.6% since its highs yesterday.

Given another poor close, look for stocks to open tomorrow gap down, and pressure on the Federal Reserve to call off any rate hikes to increase.