Wednesday, February 28, 2007

Domed House Update


Here is a daily chart of the Dow Industrials showing my interpretation of the market's action in terms of George Lindsay's Three Peaks and a Domed House formation. I commented on this chart yesterday and I don't have anything new to say. However, yesterday's big drop has caused me to redraw the estimated future path of the average a little bit.

7 comments:

Anonymous said...

Carl,

I wanted to thank you for sharing your knowledge. You are a true blessing and a very kind individual, Thank you.

Sinerly,

Chitown Trader

Anonymous said...

right on, CF! I would only expect a bit more time for pt 23; my call would be for pt 23 around April 23.....

this increased volatility comes along with eclipse season, for the star watchers.....

Anonymous said...

Carl, Is it possible for Point #25 to be higher than Point #23? I ask just because I know some of your other anaylsis has marked that as a possible high. Thanks.

Achal said...

Carl,
From Lindsay's schematic, point 22 appears to be higher than point 20.
Could we have hit 23 already, and yesterday's decline is 24?

Anonymous said...

Hi Carl ---- when was the last Domed House formation? Does this pattern just keep repeating and can you show us past successful examples that are recent?

I remember back on the old FNN Guru Review that Jerry Favors would show Domed House charts on the 1990 Dow which appears to have been a valide 3 peaks & dome.

Has there been any since then? The 2000 top? When should someone expect these patterns to occur? and do they occur on hourly charts?

Thanks in advance,
Robert

Anonymous said...

having been bearish since late january early febuary i noticed something 2 days ago . not going to get to far into it . but there is a bullish case to be made .
for instance on the nasdaq we might consider point 15 in the november 2006 highs . and we have since seen point 16 17 18
if we were to go back to the july lows on the ndx chart . 1 day before the actualy daily low we have seen an important low every 39 trading days . this next low is thursday march 1 2007 . given a different veiw if the dow compared to elliott wave only completed a 3rd wave into feb 20 ten we should see a 5th wave which means 5 more waves up . technically 5th waves are the weakest waves so all the bad news would be what we should espect to see going forward if this is indeed both point 23 as well as a 5th wave . and in terms of the nasdaq 100 if this is still part of the 5 point 16 17 18 19 20
then the nasdaq would hold above
its january lows and lag the dow
and the spx , looking at a monthly
chart of the oex a case can also be made that we had a short sharp 4th wave . so there is definatly a case to be made for the bullish die of the picture. in all of my work everything trend wise pin points next week as the pivotal
time component. if next week turns out to be up then id expect the market to be up into march 12th
plus minus a few days . and i would also conclude if this was to happen then we should see continued strenght into mid june to the end of july . after that time period which is a bit broad
we would then see a strong decline into march 2008 and tis would be only the begining of a larger decline into 2010 . if how ever
this market extends lower next week then it leaves the door open for an overall decline into mid june to the end of july . and from there we would see a very strong rally into march 2008 . to me we are at the pivotable point in terms of time . the market is overbought . and the so called experts are all expecting to buy the next drop . this should be seen as there wont be another decline since they will be in disbelief , this is exactly what happend at last years lows .
kind of a bit long in te tooth today yet i firmly believe that without looking at both sides of the market and trading based on the failures . right now there is not a proven failure with the bullish case .
my nickle
and good job

Anonymous said...

I agree with another poster that we were at point 23 and approaching point 24 and that should be evident by tomorrow massive selling once again.