Brazil’s benchmark stock index, the biggest decliner among the world’s 20 largest markets yesterday, is the most oversold since just after September 2001’s terrorist attacks, according to an indicator used in technical analysis. 
For Auerbach Grayson & Co.’s Richard Ross, a chartered market technician with 18 years experience, that’s a warning sign of further declines, not a signal to buy. 
“When you get these oversold levels amidst the backdrop of a bear market it has to be viewed differently than when you get oversold readings in a bull market,” Ross, Auerbach Grayson’s global technical strategist in New York, said in a telephone interview. “It almost confirms the sell signal rather than piques my contrarian instincts.”
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