For the next shakeout I see two possibilities: a crisis in our fiscal funding or contagion from an external event.
Either is strong enough to knock the stuffing out of the 3000 mark. If this gives way as I suspect it will, the winter will be long and devastating.
Civil mood has decidedly turned sour of late. We might be getting into the anti-establishment mojo engulfing other nations.
A relief rally is welcome but I think it will be short-lived at best. 2016 has not been exactly action packed save for the beginning of the year and the aftermath of interest capping. This pushes and extends the crisis horizon both locally and abroad to possibly include 2017 and a major part - if not all of - 2018.
This would form awesome accumulation period awaiting the real recovery and subsequent bull in 2019/2020.
The main purpose of the stock market is to make fools of as many people as possible.