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