Who Popped China's Bubble?

The markets are tanking at the open on the heels of a much weaker than expected durable goods report and spillover from very weak asian markets overnight.

China's main stock index plunged roughly -9%, its biggest one-day plunge in 10 years. You can see the gap lower on the FXI, the Chinese ETF that trades on the NYSE.

Gauges of investor sentiment are spiking higher, and this may help the market find a bottom and work higher into the close.

The 10-year yield is lower again, falling just below 4.60%. Oil is also trading lower, but still above $60.

The Nazz is down nearly 2%. The last time it suffered a 2% daily decline was Nov. 27 by my count. As a group, brokers are down the most (-2.5%), but every sector I follow is lower. Call it a sea of red.

But it is still very early. So while every bear CNBC trots out today will say this is day 1 of the dreaded correction, sentiment is already bearish and I believe that will limit the damage.