FWIW I think we have a major crossroads coming up with the s&p. There appears to be a major resistance level at 1400. If we break through then I think we will see a lot of herd mentality institutional investors come off the sidelines and get long equities. Combine this with a huge short squeeze and we might see an enormous, sustained rally in the equity markets in the coming months.

Of course, if resistance holds and we see yet another sell-off, I think this may deflate investor emotions to the point where we re-test and break down through those January lows, leading to the "washout" supposedly needed to mark a bottom. Anyone think this is really the either/or case I'm making this out to be? Or we will just continue to go sideways in a trading channel?