Summary:

• Global stock markets lost over $5.5 trillion in value during recent sell off.
• Central bankers took to the speaking circuit to arrest the market decline.
• Fear readings and oversold conditions last seen in 2011.
• Strength of current bounce to help settle bull and bear debate.
• Several supports argue for near-term bullish outlook.

Over $5.5 trillion in value has been erased in global equities since they peaked in September and stabilized last Wednesday. The S&P 500 lost nearly 200 points with the Dow shedding nearly 1500 during the correction. Commodities took a nosedive as well West Texas Intermediate Crude, which fell nearly $28/barrel from a high of $107.73 in June to $79.78 last week. Selling climaxed when the Dow fell over 450 points last Wednesday; though panic selling quickly turned into panic buying as selling pressure was exhausted.

The historical chart for the index shows last week’s readings were the lowest in two years as investors’ risk appetites evaporated:

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