By Richard Russell
Today everybody watches the news with the intensity of a barn owl searching for mice. Over the last few days I think I've seen over 100 technical studies all saying that signs of a market top are missing. The definitive characteristics of market tops have not yet appeared.
To which I reply, what about long-lost Dow Theory? The Industrials have recorded new record highs and yet the Transports refuse to confirm. As I write an hour before the close, the Transports are below their 200-day moving average, yet the Industrials fluctuate within a few hundred points of their all-time high.
The Transportation Average is a mixture of airlines, truckers and rails. Industry may be producing the goods, but if the goods are not moved, the economy is in trouble.
The Industrials are again below the 18,000 resistance level and the Nasdaq is down 20 and once again below its 5,000 resistance level. The S&P and Nasdaq show seven distribution days each, which ... Log in or subscribe to continue reading.