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Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives -- Ignore unavailable to you. Want to Upgrade?

To: Gary105 who wrote (23387)	8/10/2011 12:27:55 PM
From: mazel-tov	Read Replies (1) \| Respond to of 219418

I have no idea regarding the time frame but you are correct that we could have a decent rally before we bottom. Basically, it boils down to whether we are already in a bear market or whether this is still a correction. I will focus on sentiment indicators and momentum divergences to evaluate a bottom. Of course, GZ's model will provide a useful confirmation. Here is an article worth reading by Roubini who is viewed as a doomsayer but has been more right than wrong in terms of his prognostications. http://uk.finance.yahoo.com/news/The-Man-Who-Predicted-This-foolcouk-4056092053.html He believes that we are veering towards a recession which may explain the downturn in the market if he is right. Combine this with the cuts in public spending in the US and Europe, the limited options available to central banks and the inability to reduce taxes and Roubini's point about whether we are facing a deep recession or worse becomes more evident.