We left yesterday's market with Industrials short of their record close and with Transports actually down. Thus from the standpoint of reading the Dow Jones averages, I received no forecast of coming events. I should correct that statement by saying that in the absence of new highs in the averages we received no clear signal of better times ahead.
I have studied the action of the Dow Jones averages for over 60 years and I don't remember a time when the averages did not give early warning of a correction or a bear market. I keep harping on the number 7983 which is the June Transport low. As long as the Transports do not violate that number the market picture will continue to be constructive. A violation of 7983 would be ominously bearish and would open the way to a full correction or a bear market.
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