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Stock Market -- Technical

Posted on October 04, 2008

As most technicians will tell you, the stock market is nowsubstantially oversold. As a guess, we are due for a rally ofseveral weeks duration to begin either this week or in the earlygoing next week. My selling pressure gauge -- a moving averageof NYSE decliners -- is near strong oversold levels. This one hasworked best in the decline since autumn '07.It is still too early to tell whether this is a routine cyclical bearmarket or whether something more serious is afoot. If one wereto allow for a rally over a few weeks in the short run, therecould well be another sell off that carries the SP 500...

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