By Richard Russell
As subscribers know, I wish the best for America and believe that America is the hope of the world. Yet there are a few things that worry me.
1. I believe the US economy is sinking into recession as described by John Williams of Shadow Statistics. I believe we are in a period of deflation and deleveraging. I am convinced that the Fed knows the economy is contracting and this is the reason that they have not yet raised rates.
2. There are now 10 distribution days in the S&P and 4 in the Nasdaq. Thus it is clear that many institutions are stepping to the sidelines. A combination of ten distribution days in the S&P and 4 in the Nasdaq comes to an ominous total of 14, and it puts the market under pressure.
As I write at the close, the Dow is down 357 and has broken below the critical 17,000 level. ... Log in or subscribe to continue reading.