Over the short term, starting within a day or two there is a very good chance of a sharp rally higher. However, the indicators are on the brink, so if the US Congress does not give the right signals about how the current problems will be resolved, the markets will nose dive. The technicals favor a rally but can always be trumped by news.
Regardless of the outcome, the recent lows give no indication that we have reached a final bottom, stocks are still under heavy selling pressure and until this abates the intermediate term trend remains down. IRA investors should remain on the sidelines.
This chart is an update of one I posted earlier here