Crystal ball says we are in the early stages of a fairly shallow correction / consolidation, which should last at least until the US midterms & the QE2 Fed meeting around Nov. 3.

Market wants Republicans to take the house and a big QE2. A disappointment on either front (There's a chance the Dems hang on by a fingernail) and we get a sharp 2 day selloff, followed by the gloom and doomers predictions of a resumption of the bear market. Immediately thereafter, we get a powerful rally into January.

I'll check for cracks, but that what the crystal ball says.