Warning: Bear Market in Progress

The Dow Jones industrial Average recorded a high of 13,279.32 on May 1, 2012. This Dow high was not confirmed by the Transports. The two averages then turned down and broke below their April lows. This action confirmed that a primary bear market is in progress — it was a textbook bear signal. I consider the April-May action to be a continuation of a primary bear market that started on October 9, 2007 with the Dow at 14,164.53. We are now dealing with the latter part of the primary bear market that began in 2007. Subscribers should now follow a course of utmost caution.

As for gold, I think it will be under pressure for a while, but before this bear market is over, gold will embark on a major bull move.

……..Richard Russell.