An indicator of when the "deflationary scare" is getting close to ending will be the price action of oil. Going back to last June, WTI got as low as $77 and Brent at $91. I am expecting those price areas to be retested. Depending on "demand" statistics at that time and central bank "easing" policies, will determine if those levels hold and turn up-starting the reflation trade.
So, until oil grinds down to those levels, I expect stocks to continue lower as investors realize world economic growth is not strong enough to support current earnings estimates.
On the bullish front today, Jens Weidmann, an important fellow on the ECB, hinted ECB rates cuts are coming, if warrented. Well they are warrented now and will become so, in the coming weeks.