The interest rate cut by BOE could not bring cheer to the FTSE. Liquidity situation looks slightly improving but who would lend in view of slowing consumer growth. Profits could fall further and credit defaults may become a fashion. The only hope lies in the government spending on some sectors like infrastructure even if they start building bridges to nowhere or dig canals towards the sea.
Long term investors may have to wait much longer perhaps! But do invest in fundamentally strong counters at lower levels. Banks, IT, Energy, Oil and telecom sector may rise first when markets improve. But manufaturing and comodity may take little more time.

Needless to say that it is a traders market. Block the greed and trade light as volatility is going to remain here for a long time. If possible, learn to trade in options as they limit the losses.

Yesterday's cut in DOW is deeper than was expected and seems to be headed towards its recent lows soon. Similarly, if FTSE also closes below 4177 and NIKKEI below 8258 today then expect all other markets also to follow suit. Conversely, a close above these given levels could maintain the uptrend for a few more days, but looks unlikely unless some positive news triggers.

Square off some of your short positions and IM(in the money) put options when NIFTY spot is around 2750 levels today. If Nifty rebounds from/above this level then there is a possibility of resumption of uptrend for a couple of more sessions.