First of all, this is another victory for the “Dow Theory”. Formulated 105 years ago it says the bear market is triggered when Dow Jones and Transports are making simultaneous lower low on a daily closing metric. According to great Dow the bear market was triggered back in November. This theory never failed before, never. And today it scored one more victory when, two months later, all major indexes completed the bear market pattern on much simpler and universally accepted TA charting method.
Usually the Dow Theory followers are getting out of stocks few weeks later after the day the Dow Bear starts, when stocks rebound a bit. This time it was back in mid-December. You can imagine how happy they are now 🙂
This bear is still young and not very dangerous. But give it 2-3 years and it will be a mighty beast, and the blood will be on the streets.
Dear bear, please be kind to us, grow fast and leave young, get back to your forest in 2010!