“Note that the S&P and the Wilshire have NOT confirmed the Dow. In one of the strangest situations I’ve ever dealt with, neither the S&P 500 or the Wilshire 5000 have confirmed the Dow in that neither the S&P nor the Wilshire have violated their August 16 lows. What is the meaning of this absolutely weird situation? I don’t know — honestly I really don’t know. But it is certainly something to think about.

Does the superior action of the S&P and the Wilshire cast doubt on the Dow Theory bear signal? I don’t know. I’ve never in fifty years of watching market action seen this type of situation.

“There isn’t a lot more that I can say that is worth saying. The market has told its story. The scene has changed. I’ve lived through these changes before, and so have my subscribers. A few of my subscribers have been with me for almost 50 years. We’ve survived and done pretty well over those 50 years. We will continue to survive, regardless of the mildness or ferocity of this bear market….”

Richard Russell on how Dow Theory confirms that we have begun a bear market