For emphasis, let me repeat last week’s headline statement:

“Do not let emotions overwhelm your sense of reason- avoid panic. The market is encountering a crisis in confidence. This is not the same as a financial crisis or a recession, although, a prolonged crisis of confidence can lead to either if the crisis in confidence lasts long enough. The FED realizes this. The FED has stated several times in the past they will take measures to support the economy. I believe, more probably than not, that the FED will move to support the economy and its actions will be well coordinated with other central banks around the world. This action could be impressive and the stock market’s WOW factor may be big enough to ignite a substantial rebound in stock prices. I am confident you would not want to sell now and miss the rebound if and when the FED acts.”

With the passing of one week, we now know:

1. The FED has indeed taken measures to support the economy by signaling that it would hold short term interest rates at exceptionally low levels through mid-2013.

2. Other central banks around the world acted to support their economies and protect their markets.

Although we cannot assume any guarantees from the actions so far, we can be more optimistic that the key players are attempting to restore confidence. And, we know from history, that when confidence is restored, the equity markets can go up as fast as they went down.

Let me know if you have any additional questions.