FWIW,
I heard a guy on one of the financial networks say he thought the Dow would go down to about 10,000, that there was one more purge necessary, then it would start a solid bull market.
I think the final purge will be the possible failure and breakup of Washington Mutual Savings Bank, something that actually a lot of investors want to do. Once that clears, then you will see a lot of bargain hunters—especially from cash-rich Bahrain, Dubai and Qatar—jump in and buy a whole slew of stocks at depressed prices.