Every bull market has its own characteristics, and I’ve been berating myself for missing this – until now. The bullish market issues a technical sell signal, but there’s no follow-through. Then a week or two goes by and the Industrial Average or the Transportation Average rallies to a new record high, along with the rest of the market. Another minor sell signal appears and again there’s no follow-through on the downside. The market stands still then rallies, and on the rally the Dow or the Transports record a new record high. Stupid me. I missed this steady progression.
Yesterday, the two Dow Jones Averages closed at joint record highs. Normally, this should call for a further advance in the market. But what’s this? The market started down on Tuesday instead of the usual action of rallying.
And what about the unpublicized rotten economic news as put forth by John Williams and Gary (deflation) Shilling ... Log in or subscribe to continue reading.