The DJIA closed down 211 points today to below 12,800....below both the psychologically important 13,000 mark and the August 16th closing low of 12845.78. This means that an official Dow Theory bear market signal has been registered.
As I've been highlighting for sometime, negative historical events are often anticipated by reversals in mass mood on Wall Street. For instance, on September 6th 2001 the DJIA broke decisively below the key psychological mark of 10,000....THEN 9/11 occurred. We are in a similar situation now.
Could it be that there will be a Black Swan event in the near future?
Wednesday, November 21, 2007
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