By Richard Russell
There are two items that bother me: One, the S&P has had 7 distribution days recently, and two, Apple stock is in full correction mode, down 14% from its recent high, and now below its 200-day moving average. Apple stock is widely held by mutual funds and hedge funds, and its capitalization is so huge that the stock can move markets.
Today, as I write the Industrial Average is flat and the Transportation Average is up 14. I’m afraid that if the Dow breaks under 17,000 and Transports below 8,000, we will be in a full-fledged bear market.
The Nasdaq has become a key leading indicator. If the Nasdaq breaks below 5,000 (it's currently 5,137), this will be a very bearish indication.
Economist John Williams continues to insist that the US economy is sinking into recession. The Fed must secretly agree with him, since they have still refused to raise short rates. If ... Log in or subscribe to continue reading.