The market will go down again theres a reason for it too: theres no compelling reason for stock prices to rise because theres no reason to believe earnings will rise. We can only take what the market gives us, and the signal is clear that values are perceived to be lower, and nobody knows for how long. Cheap stocks dont necessarily mean a bargain, but its all about the guys with cash left to invest, if they interpret average stock values as cheap and sustained buying occurs to lift the stock market much closer to the peak the investors that have been scared of losing their money will sell their stock holdings and lock in a smaller loss. And if there is no new buying the market begins to drop again, but this time, the people that get out with most of their capital are not coming back.