• 746 days Will The ECB Continue To Hike Rates?
  • 747 days Forbes: Aramco Remains Largest Company In The Middle East
  • 748 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 1,148 days Could Crypto Overtake Traditional Investment?
  • 1,153 days Americans Still Quitting Jobs At Record Pace
  • 1,155 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 1,158 days Is The Dollar Too Strong?
  • 1,158 days Big Tech Disappoints Investors on Earnings Calls
  • 1,159 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 1,161 days China Is Quietly Trying To Distance Itself From Russia
  • 1,161 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 1,165 days Crypto Investors Won Big In 2021
  • 1,165 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 1,166 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 1,168 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 1,169 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 1,172 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 1,173 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 1,173 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 1,175 days Are NFTs About To Take Over Gaming?
Zombie Foreclosures On The Rise In The U.S.

Zombie Foreclosures On The Rise In The U.S.

During the quarter there were…

The Problem With Modern Monetary Theory

The Problem With Modern Monetary Theory

Modern monetary theory has been…

How The Ultra-Wealthy Are Using Art To Dodge Taxes

How The Ultra-Wealthy Are Using Art To Dodge Taxes

More freeports open around the…

  1. Home
  2. Markets
  3. Other

Three Peaks and a Domed House?

A possible 3PDh formation can be seen on the Dow Industrials index chart. The peaks in Dec'13, July'14, and Sept'14 are the three peaks. At 9mo, the distance between peaks one and three meets Lindsay's requirement that they be no more than 10mo apart.

The Sept/Oct. decline is the separating decline and is the only weak park of the formation. Lindsay was adamant that there be a base composed of two tests of the low. If the base was descending (lower lows), it indicated a longer than normal domed house. If the base was ascending, it indicated a market that was in a hurry to get to its final high. In this case there is no base. If we remind ourselves that history rhymes but it doesn't repeat, we can think of the Oct rally as more closely resembling an ascending base. In this case we need to count the 222-day interval from the low of the separating decline. This count points to a final high for the bull market near May 25.

I'm willing to accept a missing base as the formation does contain the requisite five-wave reversal (first floor roof) in January (see roman numerals).

A 107-day interval (from the 2/2/15) low counts 112-days to May 25.

If the hybrid forecast for a low on Mar. 30 is correct, that will set up a low-low-high interval of 56 days pointing to a top on May 25.

A high in May matches the 35wk cycle high expected then.

Caveat: A Domed house at the top of a bull market seldom lasts as long as a formation that begins at a bear market low. Also, an ascending base reflects a market that is in a hurry to get to the top. These counts may be pointing the right shoulder of the domed house.

Dow Industrials Chart
Larger Image

 


To get a "sneak-peek" (trial subscription), please click here

 

Back to homepage

Leave a comment

Leave a comment