By Jon S. Strebler
Well, sort of. We’ve been talking for months about what the market would need to do to finally end its long Bull run and turn definitely bearish. And by the end of last week, all those things had come to pass. The talking heads (and even many astute market analysts) will pontificate about the beginning of a “correction”, defining that term as they do by a 10% or greater drop in the overall market. But the idea of a numerically defined “correction” is a relatively recent and arbitrary construct, and one in which I find no particular justification or value. The facts as I see them, following the long-established principles of Dow Theory Letters, are that:
We got a Dow Theory sell signal several weeks ago, when the Industrials followed the Transportation Average in breaking below their previous secondary reaction lows, after the Transports failed to match the ... Log in or subscribe to continue reading.