"Liquidity is gone The #1 question Liquidity - it means having an ample supply of ready buyers so that when you bring whatever it is you have to market, there are people with money who are ready, willing and able to buy what you have to sell. When you invest in stocks, you are entirely dependent on liquidity. If liquidity dries up there is literally no one to buy your shares. Without buyers, prices plummet and only stop when they hit values so low they are "ridiculous." The #1 stock market question is this: Is there real liquidity in the market? Or to put it more simply, are there real buyers ready, able and wiling to buy stocks? Rising prices and big volumes alone is not enough information to provide an answer this question. Here's a reality check Are investors behind the current market bounce? I don't think they can be. Here's why:" - bcultral from Bookmarklet