“It’s clear that the institutions are selling into this market. The distribution count is 8 for the S&P and 6 for the Nasdaq. Thus we are seeing clear distribution pressure on the stock market. Every market must have its trigger. I think the trigger for this market is if and when the Dow breaks 17,000. 

If Transports break below 8,000, I think it will be an ominously bearish move. What are the Transports telling us? The Dow above 17,000 is saying that goods are being manufactured, but the Transports are telling us that these goods are not being sold. They’re not being rolled out of the factories into the arms of the retail public. No, the public is increasing its savings and reducing its debts. I continue to think that we should side with nature and let a bear market clear out the debts and inflation that have built up since World War II.

I have said that in future years, the standard of living of nations throughout the world will decline. But out of the ashes of a deflated world will come a better world than ever. For my subscribers, I continue to advocate holding physical silver and gold, and getting ready for difficult times.

There’s been a huge move into the US dollar, in a flight to safety. As I see it, the dollar is now overbought and overloved. I trust my subscribers are out of the market and holding only physical silver and gold.” – Richard Russell

…..read more commentary from Richard at King World News HERE