The market was in semi-crash mode (Friday), closing on its lows with no late rally. I don’t think anybody knows what’s going on, but this is the story as Richard Russell sees it. The bear market that started in October of 2007 continued through 2008, but at the 2009 lows the Fed intervened with all the ammunition at its command, and halted the bear market.
What we’re seeing now is the primary trend overpowering the Federal Reserve. We’re now seeing the resumption of the bear market that was interrupted at the 2009 lows. All bear markets are international in scope. Thus the primary bear trend that we’re now in will affect everything on the planet. Already we hear reports of a slump in China’s manufacturing. When new Fed Chairwoman Janet Yellen takes command, she will have to open the spigots wide in an effort to halt deleveraging and deflation.
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