There is a hint of panic in the market. Most of the times these kind of panics are precipitated not necessarily by fundamentals but by some other event like wrong trades by rogue traders, some bank or hedge fund blow up, margin calls , etc. In such cases the buyers just step aside and are on the sideline and good as well as bad stocks get punished. When the panic plays itself out, the market rebounds. History of market is full of such panics.