As I have written, the Dow will wash the whole 12k range through. As I made this prediction awhile back, I expect to have my support number taken out, but only barely. I thinkthe Dow will bottom at around 11,953 and then Bernanke will anounce the recovery needs to stay on track.
QE3 will blow the dollar out of the 70s, and we only have a matter of weeks before the continuation of quantitative easing is announced. Quantitative easing is easily the most ludicrous monetary policy ever conceived, yet it is the only policy that has been considered. At no time has the even mentioned that a rate rise is around the corner, never mind unwinding their book. The Fed will continue with the same policy to help jobs and what not. They will also likely announced a new jobs program.