Dow Industrials in Perspective

Here's a five year chart of the Dow Industrial Averages. It shows the run up to record highs and the crisis downturn. At its current level, it remains at just over a 50% retracement from its crisis lows, which is not a retracement out of the ordinary after a drop like the one we had. We continue to believe it is an extremely dangerous stock market, vulnerable to a significant break lower at any time. The latest warning signal is the upticking Fed funds rate.