How low will the Dow go?

On CNBC's "Squawk on the Street" this morning, University of California economics professor Peter Navarro explained why he thinks the Dow Jones Industrial Average may drop to 6,000. Navarro noted that "downside risk is large" because the Dow has broken through the critical 8,000 support level even with a stimulus plan and bank bailout in place. 

He added the global economy is "getting worse at a faster rate than our policy is getting better." 

But Brent Wilsey, president of Wilsey Asset Management, believes the "cash on the sidelines" will protect the Dow from such a large dip. Once positive news reenters the equation, that cash will be injected back into the economy and result in a "huge rally." He thinks investors will soon begin to "test" the market and move back into it slowly. He expects the Dow to move back up to 10,000. 

The Dow ended the week at 7,850.41.