After This Week's Volatility, Is There Light At The End Of The Tunnel?

Hard question to answer these days huh? While we really haven't seen any economic factors that would lead us to think we are going to climb out of this hole anytime soon, we have fallen so far and so fast, that bottom-feeders are starting to get hungry again. Still, let's face some facts about the health of our economy. First, we are attempting to solve our financial problems rooted in debt with more (albeit less expensive for now) debt. Second, we are still of the school that just because we are Americans means that we are guaranteed to get paid higher wages for doing a job that someone else overseas will do for 1/10th of the cost. Finally, we resolve to continue and blame others for our own greed (myself included).

At the end of the day it will be a slow and painful climb out of this hole, but we will recover! America is still a young and determined country will many years of success ahead of her. It's natural to have these pull-backs and recessions in a healthy economy. The only thing I am worried about is that we are not attempting to solve these problems in a way that will produce another bull market anytime soon.

Now, back to the charts. We are at a vey interesting point in the markets; break-point. If we hold the support levels from here we could rally quite well over the next few weeks. But, a break hard below these levels and we are headed for pain and suffering...