• 144 days Could Crypto Overtake Traditional Investment?
  • 149 days Americans Still Quitting Jobs At Record Pace
  • 151 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 154 days Is The Dollar Too Strong?
  • 154 days Big Tech Disappoints Investors on Earnings Calls
  • 155 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 157 days China Is Quietly Trying To Distance Itself From Russia
  • 157 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 161 days Crypto Investors Won Big In 2021
  • 161 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 162 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 164 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 165 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 168 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 169 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 169 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 171 days Are NFTs About To Take Over Gaming?
  • 172 days Europe’s Economy Is On The Brink As Putin’s War Escalates
  • 175 days What’s Causing Inflation In The United States?
  • 176 days Intel Joins Russian Exodus as Chip Shortage Digs In
  1. Home
  2. Markets
  3. Other

Three Peaks and a Domed House Revisited

The 3PDh pattern of 2014-2016 appears to have failed. After a textbook, five-wave pullback (first floor roof/points 15-20) in April-June 2016, the Dow shot up in a vertical fashion fulfilling Lindsay's description of the 2nd floor wall (points 20-21). That was followed by a small cupola or head-and-shoulders top with the supposed bull market top arriving on 8/15/16. The following sell-off should have reached the bottom of the Separating Decline (February lows) at a minimum. As we all know, rather than experiencing a bear market, the Dow found a low on Election Day and the rally to new bull market highs has been named the "Trump Bump". But appearances can be deceiving...

The minor sell-off following the August high also played out as a five wave reversal and the subsequent rally since the election is the definition of a 2nd floor wall. Since mid-December, the Dow has moved sideways which is necessary to the formation of a cupola.

The standard time spans tell us not to expect a significant high until the period April-August 2017 but it never hurts to keep one eye focused on what isn't expected...

Dow Industrials Three Peaks and a Domed House Chart
Larger Image

 

Idealized Three Peaks and a Domed House Chart

 


Try a trial subscription at Seattle Technical Advisors.com

 

Back to homepage

Leave a comment

Leave a comment