The Dow Jones Industrial Average is currently off 7% from its April high and has broken decisively down through its 50 Day Moving Average — the Federal Reserve and economist have also described this current down trend as a “Soft Patch” but the markets are not so sure.

Lately, some analysts and traders have been predicting there will be another market crash in 2011 and that Wall Street will be once again be exposed to “Insider Trading” scandals, “Ponzi Schemes” and “Fraudulent Companies” making false claims on earnings.

There is no sure thing when timing the stock market but when price action and other “Technical Analysis” stock indicators confirm fundamental economic issues, it’s a good bet to go with the flow. Right now, the flow is down — the level of debt the government has taken on to aid an economic recovery is at the extreme and has become extravagant because of the financial crisis. U.S debt stood at 92% of GDP at year-end 2010, on par with beleaguered Portugal’s level of public debt.

A stock market crash is a sudden drastic decline of stock prices across a significant cross-section of the market. Crashes are often driven by panic amongst the investors.