'Major Crash' Likely If Stocks Break May 7 Lows, Russell Says
Investors should sell U.S. stocks because the market is at risk of a "major crash," Richard Russell, editor of the Dow Theory Letters newsletter, said in a note to subscribers today.
The decline would follow should the Dow Jones Industrial Average and Dow Jones Industrial Average fall below their May 7 levels, he said. They have risen 1.3 percent and 2.8 percent versus their closing levels that day.
"If I read the stock market correctly, it's telling me that there is a surprise ahead," Russell wrote. "And that surprise will be a reversal to the downside for the economy, plus a collection of other troubles ahead."
The market started showing signs of deterioration in early April, including a shrinking number of stocks reaching 52-week highs and falling stocks outnumbering rising ones, he said. Russell, 85, has published Dow Theory Letters every three weeks since 1958 and posts daily market commentaries on his website.
Scary - scare-mongering.
All the best with your savings, Cheers!