Dow Theory Letters’ veteran Richard Russell is alarmingly ambivalent about another Stock Market Crash. On Friday night, he reported that his favorite indicators were still holding up and that “frankly, it’s difficult to envision a bear market in the face of what my PTI [Proprietary Technical Indicator] is doing.”

But Russell concluded: “The whole current mess reminds me a lot of 1929-30. After the crash of ‘29, the stock market roared higher, even as the economy was simultaneously weakening. When the great post-crash rally died in April 1930, the market turned down with a vengeance, and the Great Depression began. …The market is probably now in the process of forming a complex top. If the market now turns down convincingly, we could see the beginning of Great Depression No. 2.

” Russell is just old enough to remember Great Depression No. 1.

In yesterday’s Dow Theory Letters Richard Russell Posted this:

I assume that most of the common stocks (if any) that my subscribers hold are now under water for the year. The watchword now is CAUTION. The KEY word for the stock market now is DETERIORATION.

In another direction, how do we know that consumers are buying? One way is to examine the charts of the outfits that MOVE the goods. For that I’ve included below the charts of the railroads, UPS and FDX. The rails have broken sharply below their 50-day moving average, and UPS and FDX has broken below both their 50-day and 200-day moving averages.

If the goods and merchandise are bought and being moved, you don’t see it on these three charts. Bennie and the Feds, it’s time to rev up the helicopters.

Source: Richard Russell, author of the world’s longest-running investment letter, Dow Theory Letters went bullish on Gold below $300 in 2002,  has stayed bullish and remains L/T bullish to this day:

Richard Russell has made his subscribers fortunes. One of the best values anywhere in the financial world at only a $300 subscription to get his DAILY report for a year. Dow HERE to subscribe.