By Jon S. Strebler
We’re long past “Is the stock market bullish or bearish?”, and well into the “How high can it go?” phase. More people are weighing in on that question, and surely we’ll be reading more and more on the topic.
Our own Dow Theory Team wrote about the very important psychological stages of markets last Friday, and also on the value of keeping an eye on market breadth, e.g. the A/D line, which we would do well to keep in mind going forward. Richard Russell often reminded us of the folly of trying to guess how far a bull (or bear) market could go. It was, he believed, an exercise in futility; instead, stay with the primary trend until it changes, he advised. That is the reason Richard created the Primary Trend Index (PTI) decades ago, and it has served readers well.