Another Warning Bell Rings for the Stock Market

A short four weeks ago, the stock market impressed us with what was later dubbed a flash crash — a sudden 1,000 point plunge in the Dow Industrial Average, followed by an equally fast retracement of half the decline. Impressive, indeed, but also an important technical sign.My interpretation of that episode is that it was a typical warning crack …A warning crack appears at the end of a bull market’s move. It’s a sign that the character of the market has changed; that the topping process has started. It’s like ringing a bell, a harbinger of what the future holds. And the severity of this…