Here is a daily chart of the Dow Industrial average. On it I have marked in red numbers the turning points of a developing domed house which is part of an example of one of George Lindsay's Three Peaks and a Domed House formations. I last commented on this domed house here.
I now believe that fluctuations since late October have been tracing out what Lindsay referred to as the "five reversals" part of the domed house. These reversals often assume a vaguely triangular shape and should be associated with a definite slowing of the advance from point 14.
The implication is that the peak of the domed house is still ahead of us. Measuring 7 months and 10 days from the July 18 point 10 we arrive at February 28. This is where I have located the hypothetical point 23 on this chart. But we could as well measure from point 14 in which case point 23 would be located on March 21 of next year. In either case this analysis suggests that the Dow will advance during the first quarter of 2007 but that the net gain will represent but a 5% or so advance from current levels.
3 comments:
The Feb/March topping would also be consistent with the four year Kitchin cycle as well as the 9-12 month stcok mkt cycle.
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Carl:
How does George Lindsay's work fit in with Elliott Wave theory, if at all?
tiaqsf
REGARDING YOUR LATEST DOW 3 PEAKS DOMED HOUSE UPDATE .
WE ARE VERY CLOSE AGREEMENT .
I WANT TO MENTION A FEW THINGS
WITH TIME .IM USING NYA WEEKLY
MARCH 14 2003 BOTTOM ( WEEK OF ) PLUS 51 WEEKS TOP MARCH 5TH 2004 PLUS 51 WEEKS ( TOTAL 102 WEEKS ) TOP FEB 25TH 2005
MARCH 14 2004 PLUS 102 FEB 25 2005 PLUS 102 WEEK OF FEB 9 2007
AUG 8 2003 LOW PLUS 92 WEEKS MAY 13 2005 LOW PLUS 92 WEEKS
EQUALS EQUALS WEEK OF FEB 16 2007.
BOTTOM TO TOP TO TOP ( MARCH 03
FEB 05 TO FEB 07 )
BOTTOM TO BOTTOM TO TOP
AUG 2003 MAY 2005 FEB 2007
OCT 21 2005 LOW PLUS 34 WEEKS
EQUALS WEEK OF JUNE 16 2006
PLUS 34 WEEKS = WEEK OF FEB 9
2007.ANOTHER INTERESTING TID BIT . THE JUNE 1965 LOW TO THE
JAN 1966 HIGH WAS 143 TRADE DAYS , PLUS ANOTHER 17 TRADE DAYS WAS THE TOP FEB 9 1966
ALL TOLD ROUGHLY 160 TRADE DAYS
THERE IS A CLOSE SIMILARITY WHEN OVERLAYING THE 2 CHARTS .
AS FOR YOUR DOW 3 PEAKS DOMED HOUSE PATTERN IF ALL MY SHORT TERM CYCLES ARE IN TACK .
DEC 19TH 20 TH SHOULD BE POINT 20 JAN 4TH POINT 21 JAN 16TH POINT 22 AND JAN 30 TO FEB 2 WOULD BE THE POINT 23 TOP .
FOOD FOR THOUGHT AND GOOD WORK
JOE LONGWILL
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