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Richard Russell, an uber bear and author of the Dow Theory Letters, has recently had a difficult time articulating what had made him so bearish. In previous commentary, he’s talked about an “ominous something,” a thought that came from his unconscious, and an intuition that something big was heading our way.In his latest commentary, he has gotten confirmation based on none other than the Dow Theory. From King World News:
IMPORTANT — Dow Theory — The D-J industrial Average recorded a high of 13,279.32 on May 1, 2012. This Dow high was not confirmed by the Transports. The two averages then turned down and broke below their April lows. This action confirmed that a primary bear market is in progress — it was a textbook bear signal.”
The bear confirmation is particularly valid because nobody seemed to notice it nor did any analyst appear to be aware of it….
Russell recommends investors to “follow a course of utmost caution.