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By Lawrence G. McMillan

The current downtrend in the market remains intact, as rallies are getting shorter in time (one-day affairs, mostly) and downward moves are faster and larger. This is further evidence of the fact that the primary trend is down.

In fact, considering the hype behind yesterday’s oversold rally, it is actually an even more negative sign that it was obliterated so quickly. The chart of the Standard & Poor’s 500 Index SPX -1.74%  is in a downtrend, and that is the most important thing. SPX is once again nearly three standard deviations below its 20-day moving average (an oversold condition). Oversold rallies are possible, back to the declining 20-day moving average, which is now at about 1308.

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