Was There Any Doubt?

I was kind of amused by the article "Was that a Dow Theory sell signal?" appeared in MarketWatch on Monday. What made me amused is not the contents but the title of the article. The title implies we were in a bull market until Monday, February 2, 2009, when we got a Dow Theory sell signal that put us in a new bear market.

For those that have been following this blog know I have repeatedly stated we are still in a bear market and the bottom has not been made. In my post on October 25, 2008, "The Market Whispered", I wrote about how the Dow Theory told us a lower low is yet to come. Again on October 27, 2008, the Dow Theory reiterate a lower low is yet to come. The day before the November 20, 2008 low, another Dow Theory confirmed low telling us a new low is forth coming. Finally, the November 20th low. Is there still doubt that we are not in a bear market. With Monday February 2, 2009 Dow Transport new low, the Dow Theory is telling us again to expect a new low on the DJIA.



I maintain the belief we are still in a bear market until the DJIA makes a non-confirmed low. And I would have titled the MarketWatch article "Was there any doubt we are still in a bear market?"