The stock market...

...as measured by the Dow and S&P averages has now given back about half of its gains from the rally from the lows back in 1932 to the all-time highs in October, 2007. Warren Buffett said recently that the economy is in a "shambles." This should be a good time to buy equities. I've been calling for a bounce for a couple of weeks now, and I'm beginning to feel like the boy who cried wolf in reverse. But if the market doesn't hold these levels we could see a further correction of 61.8% retracement from the October '07 highs (that's a Fibonacci number, for you math buffs.) That would bring the Dow down to around 5400 and the S&P to about 600.