There are over a dozen different news items that are affecting the stock market today. As is my usual custom, rather than talk about the news, I will concentrate on the action of the stock market. Occam’s razor tells us that the simplest and most direct explanation is usually the best one. Below we see a daily chart covering two years of the Dow. For the first time in the last two years, we see the Dow trading below both its moving averages. In doing something that it hasn’t done in the last two years, I believe this represents a trend change.
But how far will the new trend carry? Using my old friend Joe Granville’s method, a declining trend ends when the greatest number of new lows appears. Yesterday on the NYSE we saw 616 new lows. If yesterday’s 616 new lows are not surpassed, then by the Granville method the ... Log in or subscribe to continue reading.