Though it's not the only source of volatility, it's hard to deny that the impact of the collapse of trade negotiations is here to stay with the market gauging the implications of a continued trade dispute with China. 

As the market increasingly becomes "emotional" as investors search for a bottom, Jim Cramer breaks down what could turn things around: 

"We need to see either rate cut, which we're not going to do. Cause that's just basically Jerome Powell saying, listen, I was dead wrong or we need to see a series of really strong numbers away from a China deal. I say that because it seems like we're so far from China deal now that it's kind of freaky," he said. 

"I mean, I just think we were so close two weeks ago. How did we go so far? And the answer is the hardliners took over...Then when that last deal fell apart and the hardliners are people who are thinking about uh, the hegemony of the Chinese, they are not at all, not at all thinking about trading," he continued.

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