Markdown Editor: Show simple formatting while editting

[ghost]

It would be really neat if there was a way to show Markdown changes in the editor. For example, if you typed *Italic*, the word would be instantly italicized the moment you added the closing *, instead of having to go to view mode to see your Markdown rendered.

Is something like this in the works?

[vHanda]

This is something I had explored long back, but I never finished it up. It certainly would be nice to have.