With the intra-day low on Tuesday and the closing low on Wednesday, the forecast for a low in the Dow early last week worked out well. Last week's commentary also laid out the case for that low to be followed by a very short rally into a high (approximately) this Wednesday.

Unfortunately, this week's high is not expected to be the first in a series of higher highs as cycles warn of a continuing decline throughout July. A six-month cycle points to a low during the final week of the month as does a separate 21-week cycle. The Hybrid Lindsay model identifies the period of July 24-31 as the low with July 27 as the single-date forecast.

Obtain your copy of the July Lindsay Report at Seattle Technical Advisors.com.