WHAT DOES THE MARKET WANT TO DO?
It is time for the market to tell us what to do. See the chart below: For instance, if the Dow breaks above 17,400 and then makes new highs above 18,086, it would appear that my Lone Bear scenario is either wrong or delayed. However, if the Dow breaks below 17,147 and then breaks below the December low of 17,069 my Bearish scenario would be on track for the Lone Bear Letter! It is the same with reading the NASDAQ and S&P.
Dow NASDAQ S&P
Current 17,164 4,635 1,994
December High 18,086 4,814 2,092
January High 17,400 4,700 2,013
January Low 17,147 4,605 1,991
December Low 17,069 4,545 1,973