The world is operating on the basis that during the fall of 2008, there was a financial crisis that required the action the taken by Congress, the Treasury Department and the Federal Reserve. There never has been an iota of evidence that this line of reasoning is correct. What is clear from simple observation is that an orderly bear market turned into a catastrophic crash as soon the bailout initiative started.
Economists have never been successfull at either assessing current situations or in making forecasts. My guess is that the Dow will touch the downtrend drawn on the chart. Then it will either hug the trenline for awhile before breaking out to the upside or continue to the downside and bottom out later. I am thinking a crash, anything like what we saw in 2008 is very likely.
