I believe that if the Fed hikes, it will set the bottom on the market and we will rally from there. If the Fed delays we will continue to struggle and likely hit new lows. The market hates uncertainty!!
It appears that Europe will cave on debt relief which will/has rally the markets. Unfortunately, this is the worst case scenario for the long term as now Italy/Spain/Portugal has a playbook for the future.
Ultimately there will be no accountability, potentially leading to a total breakdown of the financial system.