Tuesday’s steep sell off effectively ended the latest rally attempt and sent all the major average back down towards their recent lows. Since the June 15, 2010 follow-through day (FTD), this column has steadily noted the importance of remaining very selective and disciplined because all of the major averages are still trading below their downward sloping 50-day moving average (DMA) lines. Looking forward, the 50 DMA line may act as stubborn resistance and this month’s lows should act as support. It is also worrisome to see the 50 DMA line already slice below the 200 DMA line on the NYSE. This event is known by market technicians as a death cross and usually has bearish implications. Trade accordingly.