• 1,049 days Will The ECB Continue To Hike Rates?
  • 1,049 days Forbes: Aramco Remains Largest Company In The Middle East
  • 1,051 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 1,451 days Could Crypto Overtake Traditional Investment?
  • 1,456 days Americans Still Quitting Jobs At Record Pace
  • 1,458 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 1,461 days Is The Dollar Too Strong?
  • 1,461 days Big Tech Disappoints Investors on Earnings Calls
  • 1,462 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 1,464 days China Is Quietly Trying To Distance Itself From Russia
  • 1,464 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 1,468 days Crypto Investors Won Big In 2021
  • 1,468 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 1,469 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 1,471 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 1,472 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 1,475 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 1,476 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 1,476 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 1,478 days Are NFTs About To Take Over Gaming?
Another Retail Giant Bites The Dust

Another Retail Giant Bites The Dust

Forever 21 filed for Chapter…

The Problem With Modern Monetary Theory

The Problem With Modern Monetary Theory

Modern monetary theory has been…

  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