Well it looks like the elusive correction is likely happening now. For once we had two back to back down days, with the close of the SPY close of the lows of the day. XLF has broken out of a triangle to the downside. The problems with Greece, Portugal, Italy etc. which have been largely ignored by the markets are finally becoming a problem just as the SPY made new highs, and the S&P rating agency suddenly decides to downgrade Greek bonds... coincidence? If this correction is for real, it will be scary. It will be swift and fast and cause widespread shock. But I think the correction is just that... a way for the big boys to buy cheap shares from scared little fish at depressed prices.
So I think once this correction has run its course, the market will be ready to mount one final parabolic move up. The real depression like crash will not occur until we either see a currency crisis in the US dollar or the Euro, or oil quickly soaring above $150 in a very short period of time which could happen with a crashing US dollar, or perhaps hyper inflation setting in, and these scenarios do not seem too far fetched anymore. But until this crisis occurs, we should be able to enjoy a nice parabolic move in the markets, and a steady decline in the US dollar.
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