Vincent Farrell, Jr on the recovery

Vince Farrell writes a short piece (Article ) discussing the current U.S debt and personal debt.

Its a short read. It doesn't paint a good picture of the green shoots recovery. Seems like that we're going to be taxed more and the unemployment situation isn't going to improve. It paints the potential for some really bad times with the U.S debt at 360% of the GDP. This level is even higher than the 1980s.

Inflation will become a problem and the recovery may not be a quick as others are predicting.

Given the dark road ahead, the volatility of the indexes is not predicting insanely drops in the indexes as we have seen in the past year with the financial meltdown.

I'm going to keep an eye on the 480 support level for the RUT and the 880 level for the SPX. If volume picks up at these levels, we could retest the March lows. If that happens this will be a great opportunity to get long.