“The party in charge is going to sit idly by and watch economy, market just slide down without putting all stops to help their party?”

Good point. But exactly what are all the stops they are going to pull. An emergency rate cut, a bailout of LEH (when that point comes). The FED is boxed in here…I mean really boxed in. If you ask me the FED slashing rates to 2% was the party in charge pulling all the stops. That was the lube along with the stimulus package that was going to be just enough to get us past the election. Then came $140 oil. Ooops! It backfired which is so unlike the current perceived party in charge. jficquette made a good point, the VIX is low and the market is going into a No Mans Land. If oil does pop it is going to be met with some violent short squeezes that will only add anxiety to the markets. The only catalyst I can see for a rally is a huge circuit breaker drop. So I guess in theory we could see a big rally in July-Oct just from what level it starts is the question.