This is one of the more interesting passages from Richard Russell in a while:

I had a dream last night that was so specific and so clear that I was shaken when I awoke in the morning. In the dream I was speaking to a large audience. I told them that although the Dow was higher, the Dow was acting as a cover-up. I said that the rest of the market (non-Dow stocks) were falling away, one by one, and that the Dow would soon follow.

I added that all this was occurring amid an atmosphere of extreme bullishness, and that because of the prevailing bullish sentiment, nobody appeared to be noticing what was actually happening in the markets.

I warned that the whole picture was particularly ominous since so many people had re-entered the stock market, based on the extreme bullishness that has enveloped the nation.

As I was speaking I could sense that the audience was reacting as if my warnings were utter nonsense. Many were laughing or talking to each other. There the dream ended.

I woke up frustrated and puzzling over the dream. Why did I have the dream? Did it make any sense? Or was it just my worries being expressed through my unconscious?

Getting back to reality, I remembered that my PTI remains stubbornly on the bullish side. Also, the Lowry's statistic are still bullish.

But what of the actual market action, aside from my dream? Day after day we see hesitation, erratic movements, divergence in the mixed action of the Industrials and Transports.

The fact is that it's impossible to know whether the market is building a bottom for a further rise which will possibly test the highs of 2009 -- or whether the market is building the "mother of all tops" prior to a disastrous path to much lower levels.