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By Lawrence G. McMillan

For the second time this year, the stock market has suffered a severe decline in an unusually short period of time. Declines like this used to take weeks, and now they occur in a couple of days. Nearly every indicator is now in some sort of oversold state, but "oversold does not mean buy." One must wait for confirmed buy signals, and even then the early ones are often stopped out in a market like this.

Yesterday's (October 11th) low was in the general area of support at 2700-2710 for $SPX -- a level that provided good support in late May and again in late June. There should be resistance between 2760 and 2800. The equity-only put-call ratios remain...

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