Above this post are three charts. The first two are daily bar charts of the Dow industrials on which I have labeled turning points of the minor and of the major domed house formations I have been following. You find my previous posts on this subject here. The top chart is a line chart of the number of issues traded on the New York Stock Exchange which advance in price along with the 20 day moving average of this number. I last commented on this indicator here.
Take a look at the top chart of the daily count of advancing issues and its 20 day moving average. The significant thing I see in this chart is that the 20 day moving average has reached its lowest level of the past 12 months. I exepect this moving average to start moving upward toward its overbought zone and during this upmove I think the Dow will make new highs.
If I am right about this then experience shows that the Dow will make its ultimate high about 2-4 months after the 20 day moving average makes its high. In particular, this would seem to rule out the projection of the Major Domed House you see in the second chart which calls for the top at point 23 on July 13.
I think the Minor Domed House interpretation you see in the first chart is the more likely outcome in view of the behavior of the advancing issues moving average. It calls for a top about 7 months and 10 days after point 14. This is Lindsay's standard time interval for the Domed House formation and it projects a top for November 8 of this year.
It is possible to stretch the Major Domed House so that point 23 comes near November 8 too. To do this one must erase the labels for point 21 you see in the chart. Counting forward 7 months and 10 days from point 20 in the Major formation brings us to October 24 as the projected point 23.