Sorry to butt in with my technical view in this fundamentally based discussion.
According to my view what we are seeing are the capitulation levels for our markets atleast. If we consider our long term uptrend to be still intact then the usual bear market has 3 major down legs with cosilidations in between.
We already have had three legs, First one from 6300-4400, second one from around 5500- 3800 and last one that we are having is from 4600- 3200. Yes I am considering 3200 as a bottom because according to my view we have hit a bottom on Friday and we may have a bit of rally on daily charts and then their will be a long consolidation before we start a real hard rally on Monthlies.
Now if you carefully look at all the downlegs 6300-4400,5500-3800,4600- 3200 there is a definite proportion to all. There may be a false break of the lows we have currently made before the real strong uptrend on monthlies start. If the lows that we have made are broken by just 5-7% margin then I will consider this breakdown to be a bear trap, but if we break the lows by around 10%, then all hell will break loose. It will signify a 4th downleg and that will mean that Major trend for years to come has turned down, plus there will also be a 5th down leg.