Thursday, October 25, 2012
domed house update
I think that the top on October 18 completed the top of the domed house and was point 25 in the schematic. The upcoming point 26 low is likely to occur at the level where the drop from the October 5 top, point 23, matches the size of the April-June 2012 drop in the Dow. From that low a strong rally to point 27 should start. I expect point 27 to develop at roughly the level of the April 2012 top in the Dow. After the point 27 top is in place the Dow should resume its drop to standard target for this formation - the vicinity of the point 10 low.