U.S. equities enjoyed a rebound on a classic “Turnaround” Tuesday after chatter of a possible coordinated central bank policy response to financial market turbulence bolstered sentiment overnight. This boosted the yen carry trade, as the dollar climbed against the Japanese yen, lifting Asian markets and lifting spirits into the European and New York sessions.

Adding to the sense of hope has been a blatant and undemocratic pushback from policy elites and their media sycophants against the Brexit vote last week. Calls to hold another referendum, to not invoke the EU’s Article 50 exit clause, and to stay in the EU and push for concessions have all been made.

In the end, the Dow Jones Industrial Average gained 1.6%, the S&P 500 gained 1.8%, the Nasdaq Composite gained 2.1% and the Russell 2000 gained 1.6%. Treasury bonds were weaker, the dollar was down but up against the risk-sensitive yen cross, gold lost 0.5% and oil was 3.3% higher.

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Energy stocks led the way on the gain in oil, rising 2.6% as a group. Financials followed with a 2.5% gain. Defensive utility and telecom stocks were the laggards, up just 0.3%.

Endo International plc – Ordinary Shares (NASDAQ:ENDO) gained 18.2% on an announcement one of its operating companies, Par Pharmaceuticals, had been issued a new patent relating to Vasostrict. Reuters also reported the company is in talks with buyout firms about asset sales.

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LendingClub Corp (NYSE:LC) gained 7% on the announcement of a new CEO and 179 job layoffs in a bid to restore investor confidence.

E I Du Pont De Nemours And Co (NYSE:DD) lost 2.6% after being downgraded by analysts at JPMorgan on recession risks.

Technically, many pointed out oversold conditions as contributing to the day’s rebound. According to the Bespoke Investment Group, the S&P 500 was more than three standard deviations below its 50-day moving average as of Monday’s close — its most oversold level since January. Moreover, four S&P 500 sectors — consumer discretionary, financials, industrials, and materials — were also more than three standard deviations below their 50-day averages.

The big news of the day were comments by European Central Bank chief Mario Draghi at a forum in Portugal that divergent monetary policies by the major central banks could create uncertainty about future policy intentions, which in turn, could exacerbate currency market volatility (which has been the epicenter of the post-Brexit fallout).

This was interpreted as a hint that coordinated action was forthcoming should financial market losses continue.

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For now, however, the medium-term downtrend looks intact as this large-cap stocks have broken down out of a four-month consolidation range on big volume. The repercussions of the Brexit vote have yet to be fully revealed. And any policy response from Draghi and his buddies will be limited by the fact they have already thrown so much at the tepid, post-financial crisis recovery.

Anthony Mirhaydari is founder of the Edge and Edge Pro investment advisory newsletters. A two-week and four-week free trial offer has been extended to MSN Money readers.