Ok..anything is possible in the market... Who could accurately predict that the oil price would jump back to 137 just in 2 days when it was 125? So, what you said was not impossible. My wild guess is.. if the market is coming back later in this summer or in the 3rd quater, S&P may go back to 1700 by the end of 2009 or by early 2010. Just a side note... on your chart, I see a possible fibonacci ratio time zones between the 1Q 2000- late 2002 period (down) and early 2003 to 2007 Nov period( up). I am no student of Wave principle and I am always not doing well on counting and understanding waves...so sorry if I say anything wrong here.
For all their talk very few shorts have any long term short positions. Most cover on the smallest upticks.
Stock_trad3r only has shorts in his dresser. His longs are actually long johns (with a handy flap in back!!!)