The Hybrid Lindsay forecasts occasionally shared with readers in this space are a combination of the work done by the great twentieth-century technician, George Lindsay, and my own, more traditional, cycle work. In last week's commentary I questioned whether the previous Friday's low fulfilled the Hybrid forecast for a low or if it would wait until that day (Monday). We know now that it was the previous Friday. Even without the benefit of the Lindsay work we knew from other metrics that the market was oversold and primed to bounce. Now we use the Hybrid Lindsay model to forecast the next high in the Dow Jones Industrials index. It begins with Lindsay's Middle Section approach.
The significant low on 8/16/07 counts 1,510 days to the low of the Basic Cycle on 10/4/11. 1,511 days later is Monday November 23.
The reaction high on 6/18/02 counts 2,453 days to the low of the Multiple Cycle on 3/6/09. 2,453 days later is November 23.
A micro-cycle high is expected near November 24. In addition, a 12wk cycle high is due that week.
222-day interval (221-224 days): The high on April 15 counts 221-224 days to a turn in the period November 22-25.
107-day interval counted from the low on August 12 forecasts a high in the period from November 22 to Dec 2.
While calling for a decline in equities to begin early this week is fighting the bullish seasonality of the US Thanksgiving holiday, the model is calling for exactly that.
To get your copy of the November Lindsay Report click here.