Given the relative weakness in the blue chips, we might see them play catch-up to the broad market and continue higher into a Halloween turning point.  This is the alternative scenario (an alternative to a 9th September high).

Under this scenario, we would see a peak above 10,000 on the Dow in October, then a tremendous drop which could form a low near the end of the year. In some ways, this scenario has some advantages over the first one. It would allow for prices to reach even higher, with the resulting smash that much larger. Considering the fact that the Puppet Masters are continuing to blow bubble after failed bubble (and appearing to continue to “get away with it”), we probably need a resounding smash to convince them that what they are doing is not a solution, but a continuation of the same self-destructive behavior they have been engaging in for the last several decades, a behavior pattern which has virtually destroyed the ability of America to recover from the resulting destruction of our scientific, engineering and
production capability.

Some people would describe such a plunge as “sickening” or “horrendous.” I, on the other hand, describe it more as “cathartic.” In my estimation, the sooner we “snap out of it” and recognize that the world financial system has been on a gigantic “alcoholic binge” that has lasted for most of the last four decades, the sooner we can start rebuilding the corrupt system. If the result of that is sickening or horrendous, so be it. The patient must recognize the disease before a
real cure is even possible.

“bobcarver″

(T&C Forums – Knowledge Contributor)

–Bob Carver http://marketclues.blogspot.com http://thermopower.blogspot.com