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One Foot on the Accelerator, One on the Brake

By Richard Russell

 

I don’t think there was ever a time when one average, in this case the Industrials, was close to a new record high while the other was at a six-month low. I liken this to a major divergence in the averages, and it could be tearing the market apart.

 

As I write just after the close, the Dow is down 34 but still above 17,000, while the Transports are down 18 but still above 8,000. The key Nasdaq is down 32 but above the critical 5,000 level. Gold is trading at 1117.4 and silver at 14.84.

 

I liken the market to a car in which one foot is on the accelerator and the other foot is on the brake. Tremendous heat is being generated, but which way is the car really headed?

 

It looks like China is setting the way for the global economy. Another thing that bothers me is the fact that there ... Log in or subscribe to continue reading.


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