The NYSE is bracing itself for more trouble. The Wall Street Journal reports that the exchange has lowered the threshold for halting trade on single-day losses. A 1,100 point fall (roughly 10%) before 2pm will prompt a shutdown of the market for at least 30 minutes.

Monday’s 778-point slump on the Dow was the largest loss in nominal value for any single day. But to put that in perspective, the DJI plunged 22.6% on October 19, 1987. That would mean a 2,450 point loss at today’s opening level.

Tonight the $700 billion bailout bill gets a second chance in front of the U.S. Senate. A failure here would be devastating for the markets on Thursday. Interestingly, this is also the day that the SEC’s temporary ban on short-selling for financials is due to expire…