If you study history you will see that nothing politicians or regulators or central bankers do makes one whit of difference.
None of us can change what time the sun rises and so it is with financial sunrises.
The vertical lines on this yearly chart shows 40 year periods.
So 1893/4 was a low, 1931/2 was a low, 1974 was a low and probably 4th July 2013 will be a low although that may not be the lowest low.
On those 40 year lows the minor support is broken and the major support comes into play and we could see XJO 2000.
The one encouraging factor is the yearly RSI which suggests at the end of 2009 we might not be a lot lower although doesn't mean we can't get down to 2000 or lower in the meantime.
If instead we rally then it will probably just delay the low to 2013.
