By Lawrence G. McMillan
Tuesday's market action was extremely negative. A rally attempt stalled out in the afternoon, and that was bad enough considering the amount of oversold conditions that existed. But then the entire rally was erased in late-day trading, and S&P futures have continued on down another 6 points in Globex trading tonight. There is really no way to put lipstick on that pig. It was just plain ugly. As a result, the $SPX chart remains in a distinct downtrend, and there is now resistance from yesterday's high 1296 up to 1310 or so, as well as stronger resistance at 1325-1330. The 20-day moving average is falling faster now, currently at 1325. The only potentially positive thing about the $SPX chart is that it has touched the 3-standard deviation modified Bollinger Band, indicating an oversold condition that often results in a rally back towards the 20-day moving average...
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