""I am definitely watching 7,500 on the Dow 30. If we break there and get another good leg down, coupled with dumb money chasing bonds via mutual fund flows into bond funds, I think we can set a good, long lasting low -- especially with small investors chasing performance in the bond funds as they chased equity performance near Nasdaq 4,500 (in year 2000)," the strategist says from his New York office." Last caveat? "Unless we get a Fed Funds rate cut or a massive short squeeze via a volume surge, I feel we are close (to a bottom). But in a perfect world I would like to see one more crack, a big surge in pessimism," Lane says. That Dow 6,300 low, he says, "would create, dare I say it, better valuation levels for equities, which would probably allow for a more sustainable advance."
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