May 26

We are approaching a moderately oversold condition in the market. We may rally some over the next several days, but any rally would only be temporary at this point. The underlying trend is still down for now. An oversold rally would be just that -- one of relief but not substance.

The

S&P 500

has some support around 1280 (after all, it's down nearly 100 points from its high nine days ago) as well, so a bounce from that general area should not come as a surprise.

At this point, I still believe any rallies will be short-lived ones, as there has not been enough time to repair the damage that's been done. It's still too soon to buy. I remain cautious over the intermediate term.

New Highs and New Lows

Overbought/Oversold Oscillator

Cumulative Advance/Decline Line

Helene Meisler, based in Singapore, writes a technical analysis column on the U.S. equity markets on Tuesdays and Fridays, and updates her charts daily on TheStreet.com. Meisler trained at several Wall Street firms, including Goldman Sachs and Cowen, and has worked with the equity trading department at Cargill. At time of publication, she held no positions in any securities mentioned in this column, although holdings can change at any time. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. She appreciates your feedback at

KPMHSM@aol.com.