Is the Stock Market Ready to Bounce?

In my opinion, the market still has some way to go below its current values. Market participants are still wary of getting back into the market. And with middle-class working people burned by the stock market's dive, it's going to be a lot harder to convince them to get back into the market.

As grim as the situation is at the moment, I think the Dow Jones Industrials (which is a major stock market indicator) could reach 6000 points at the lowest, and then bounce back from there. The new adminitration's programs will probably take 6 months to a year before we can start seeing any difference on Main Street. With that said, I think the economy will start to recover in the first quarter of 2010 at the earliest, or second half of 2010 at the latest.