STOCK SELLING INTENSIFIES -- 50-DAY MOVING AVERAGES ARE BEING BROKEN -- A TEST OF SUMMER LOWS NOW APPEARS LIKELY

MAJOR STOCK INDEXES MAY BE HEADED FOR TEST OF SUMMER LOWS...Stock prices are undergoing more short-term technical damage.   All three major stock indexes shown below have fallen decisively below their 50-day averages.   Which raises the likelihood for a test of their August lows, and 200-day moving averages (red arrows).   All eleven sectors are in the red, with the biggest losses in materials, technology, industrials, cyclicals, and financials.  All five of those sector SPDRs have also fallen below their 50-day lines.   Defensive utilities and real estate are showing smaller losses.   Foreign stocks are also under pressure on more signs of global economic weakness.   Safe haven money is flowing into bonds and gold.  The big question isn't whether or not the August lows are tested.  The big question is whether or not they hold.