By Doug Short  (Guest Post)

After a modest one-day rally the S&P 500 selloff returned with a vengeance, falling 4.78% and closing very near the intraday low. The index is 11.99% below the interim high set on April 29, which puts it well into correction territory based on the 10% rule. Today’s thrashing also puts the index back in the red year-to-date, now at -4.58%. From an intermediate perspective, the index is 77.4% above the March 2009 closing low and 23.3% below the nominal all-time high of October 2007. Below are two charts of the index, with and without the 50 and 200-day moving…

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