Huge volume absorbed on ES and 6E at the lows yesterday. Some positive data and talk of an Italian coalition set the stage for a retrace of almost the entire Monday loss today.
I spent the day doing a long term study on retracements after 2-3% down moves. It seems for every action there is an equal and opposite reaction. 2-3% down moves are common, it takes almost the same amount of time to retrace them as it did to create them (2-3 days each way). On ES it can retrace 100+% quite easily (e.g. today).
On 6E it retraces less (this is probably due to the upwards bias on ES vs the competing currency manipulators on EUR vs USD and the fact that my data is since 2009 when Euro has generally been on the back foot).