My opinion is that the market is going sideways and establishing a base to climb to new highs or to jump off the cliff.:confused: In other words, the markets are not doing much since the last several months.

I don't know if I stated this already but investors are concerned that we are going into a recession and they are not sure whether the fed can pull us out of this without creating inflationary pressures on the economy. Keep in mind that if the fed fails in his quest to ward off a recession, the consequences will be severe and harsh for the U.S.A and global economy.

If the feds can avoid a recession, then the market will rebound and we can possibly go to newer highs and all of this will go away. Ben (fed) will become a god of sorts and will receive the noble peace price.:D However, I think it's going to be tough because of the recent job market such as unemployment, sub-prime housing market, credit crisis, etc...

Haven't you noticed that it's very difficult for anyone with any real authority to say we are in a recession? If they admit this, the markets will react accordingly sending the markets to further lows.

From a historical perspective since 1948, every recession is sandwiched between a market top and a market bottom. So to put this into today's perspective, we've seen a market top in Oct of 07 and we've seen a low in Jan of 08. So if history repeats itself, we were already in a recession from Oct07 to Jan08 (which I doubt) or we will enter a recession and the markets will go to lower lows, even lower than Jan08! This explains why the fed is fighting this so hard because he's up against historical norm.

We live in interesting times. Inflation is around the corner, the recession is already here, the dollar is in free fall on the foreign exchanges and the market has the potential for a steep decline (all my opinion of course). My view is the market is being propped up by government policy, primarily artificially low interest rates and a demonstrated willingness by the feds to continue to support the market. Who knows where it will go from here.

There is an argument to be made that, historically, the market is still over priced and due a major adjustment. Only time will tell. Again, all my opinion.