Wednesday, December 27, 2006
Dow Industrials Domed House
Here is a daily chart of the Dow Industrial average. I have numbered the turning points of this example of George Lindsay's Domed House formation in red. I last commented on this chart here.
I think there is a good chance that the market put in its point 20 low late last week. I am now looking for the dome of the Domed House to form. This will consist of points 21-25 and should assume the shape of a classic "head and shoulders" top. I have revised my estimate of the timing and price level for point 23, the peak of the domed house. Now I think it will occur in late March 2007 in the Dow 13000-13200 range.