Quick look at where we are in the sell-off as of yesterday’s close. As you can see we are more oversold than we were in July and equal to the levels achieved in January of this year and August of last. This chart simpliy measures the S&P stocks that are trading below their 50-day moving average – an  indicator I often study.

It will be interesting to see if we retest the oversold levels after today’s rally which helped relieve some of the oversold pressures the market was facing, whether we can rally off of these lows, which is something the market has managed to in recent past, but those times weren’t faced with the same financial distress that our markets are currently in.