Almost everything got hammered today. The chart to the left shows the roller coaster ride over the last few days. The big fannie/freddy inspired rally on Monday went right up to the slower moving average line (dark blue), then fell apart, then by the close rallied almost all the way back up. Today the market opened right about where it left off and continued down to take out all the gains from Monday, and then to close well into the range from last Friday, making a new low for this move. It did look like a rally was in the works after the close on Friday with a slight divergence from the oversold area. Prices on the S&P did go right to the newly downtrending moving average, almost to the tick. Actually prices gapped up on the open due to the news, but all the bullets were exhausted and that was the extent of the rally. The yellow line in the sub-graph is the same double stochastic as the black line, but drawn on weekly data. It indicates there could be more to go on the downside. The only positive I can see at the moment is the advance/decline ratio is rather flat and not making a new low. In the past it was heading lower and lower on all the rally attempts. It isn’t much to go on as far as anticipating a rally.