That also means signal printing dollar and flood the economy with huge amount Of USD, Gold is aprreciated 4.5% for the last three week. In the longer run US stock price will goes up because of devaluation of USD. However, current quater investor is US still looking at risk aversion and still 'fear' factor. DJI friday closing is the lowest in 2009, will it go for 2008 low?
Current SPY market price is USD 82.76 and a lot more awaiting put below strike 82 and large open interest low prob of expiring.

From recession to depression?

http://www.morganstanley.com/views/gef/index.html#anchor7467

"Money matters. Hence, no depression this time. The key lesson from the Great Depression is that policy, and especially monetary policy, matters a lot. Central bankers around the world have learned that lesson and have not only cut rates early and aggressively, but have also engaged in quantitative easing and are, together with governments, stabilising the banking system. Thus, money supply is expanding rather than contracting. This, together with the coming fiscal expansion, is the reason why we think that the widespread Depression angst is just that – angst."

Coming Friday is the third week of the month option expiring and also with the poor Empire State Manufacturing Index -34.7 vs forecast -23. Wait for test $DJI 7500. Money now flow to precious metal gold, silver, copper.

Both the US and UK govt have deflation problem now, BOE and FED already in the money printing mode (buy govt bond). They may not want to see equtities market free fall and the market is indecisived. The good news is both Baltic Dried Index and copper future are moving up.