• 253 days Will The ECB Continue To Hike Rates?
  • 254 days Forbes: Aramco Remains Largest Company In The Middle East
  • 255 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 655 days Could Crypto Overtake Traditional Investment?
  • 660 days Americans Still Quitting Jobs At Record Pace
  • 662 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 665 days Is The Dollar Too Strong?
  • 665 days Big Tech Disappoints Investors on Earnings Calls
  • 666 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 668 days China Is Quietly Trying To Distance Itself From Russia
  • 668 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 672 days Crypto Investors Won Big In 2021
  • 672 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 673 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 675 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 676 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 679 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 680 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 680 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 682 days Are NFTs About To Take Over Gaming?
  1. Home
  2. Markets
  3. Other

Dow Decline

Equities markets have a tendency to change direction following options expiration. Given equities rallied into the end of last week, a downturn can now be expected. It may have started last Friday or perhaps markets will sneak in one final rally on "hope" of a positive outcome from this week's meeting of European leaders on the Greece problem. Either way, a decline is expected. The only question is "how long will it last?"

While no Basic Low (the termination of a Basic Decline) is expected for at least ten months, my Hybrid model was developed to forecast those highs and lows that take place between Lindsay's Basic highs and lows.

In the Hybrid model we look for confirming forecasts centered on both the high of the Multiple Cycle and the low of the Basic Cycle.

On 2/27/07 the Dow exhibited a sharp decline. Although a sharp decline from a flattened top is standard procedure for identifying a Middle Section, in this case there was no flattened top. However, the drop that day was so dramatic as to stand out on even the weekly chart below. It counts 1,525 days to the high of the previous Basic Cycle (5/2/11). 1,526 days later is Monday, July 6.

The search for a confirming Middle Section forecast from the Multiple Cycle begins by counting the days between the Multiple Cycle high (10/11/07) and the forecast from the Basic Cycle (7/6/15). The time span is 2,827 days. Counting back another 2,827 days finds the high of the previous Multiple Cycle (1/14/00)! That high doesn't qualify as a Middle Section but it does create a high-high-low interval to a low on July 8.

Bottom Line: look for a low early in the first full week of July.

Dow 1999-2015 Chart
Larger Image

 


To obtain your copy of the June Lindsay Report click here.

 

Back to homepage

Leave a comment

Leave a comment