Actually it could rebound the other way for the short term, a correction and then a slow recovery. And the key date is when Obama steps into the oval office.
It's all about confidence and there is no confidence out there but lots of cash on the sidelines waiting.
Oil is down, Interest rates are down, Commodities are down, Equities are down and Banks are cashed up with their Govt's money but not willing to lend it out.
I too think the USD is overvalued as well as the YEN. It is the flight to safety, repatriation of cash and repayment for the carry trade as the reasons as to why they are so strong now.
Like the aussie recently,
whatever is high or overpriced has a longer way to fall.
Although alot of traders and fund managers are or will be gone, there are still some there and their aim is to make money. They use fear to force you to sell and buy your (mum's and dad's) shares and then they force the prices up and sell the shares to make money. However, they need the confidence back in the market.
There is alot of Chinese and Saudi money still around the world just waiting. Rio Tinto seems like a target for a Chinese SOE now that BHP has pulled out. Fortesque also.
The Saudis (who makes something like a Billion USD a day) have created a Sovereign fund earlier this year and they are projecting it to grow to $20 Trillion USD.
From what I hear, the markets will take off when the confidence returns and the banks starts lending and that time will begin on 20 Jan, the inauguration of Obama.
However, this does not mean that there will be no world wide recession and the man on the street will struggle or lose his job. But for people with the assets and cash who will invest, in 3-4 years time, they will be laughing.
This is the 10yr Dow Jones chart
http://www.the-privateer.com/chart/dow-long.html
Look at the recovery after each big dip.
I'm not saying we are at bottom yet and who knows where that is but everything is cheap now and all the indicators are there for the market to take off.
The markets are just missing the confidence.
