The market can always right itself...
...IF there are no troubling movements in bonds, gold or oil...and IF the float remains manageable. The only thing that could cause the float to become unmanageable would be a geopolitical event...or some action by a key central bank that shifts the percieved paradigm.
Right now, both the ECB and the BoJ are making noises that could cause trouble later this year...and perhaps even later this quarter. The problem is that the US has several macroeconomic problems that have been ignored for years...the deficits, deindustrialization, health care, entitlements and ill-advised tax cuts... Sooner or later the markets deal with these problems. And often it isn't pretty...
