By Richard Russell
Subscribers may remember that I thought the stock market would have a melt-up before it settled into a destructive bear market. It occurs to me that the chances of a melt-up are diminishing because the market is losing its upside momentum. My thinking is that the market is preparing for one of the worst bear markets in history, one that will outdo the 1929-32 affair. My old friend, Robert Prechter, of Elliot Wave fame, believes the Dow will go below 400. If this happens I think there will be doubts about whether the US can survive.
It suddenly occurred to me that my job will be to insist that no matter where the Dow ends, the US will survive, just as it did during the Great Depression.
As I write 45 minutes before the close, the Dow is down 25 and the sensitive Transports are down 70. The Nasdaq, ... Log in or subscribe to continue reading.