Dow is taking a brake. VIX is 11.45 still a 6 yr low. The parallels to the current market are obvious.
One might have a somewhat different opinion of what’s happening in the current market. In early 1973, the Dow was making new all-time highs, shortly after the incumbent President had been reelected, corporate earnings were good, interest rates were low, stock volume was low, and the two previous nasty bear markets were fading in traders’ memories. The parallels to the current market are obvious. So one relied on the Wall Street Journal or Barron’s or private newsletters for market opinion. The two were bullish all the time. For those of a contrarian bent, it was easy to see that a top was forming, for it seemed that the only bears were a few newsletter writers. The third of the three bear markets began in 1973.