Much Less Positive Numbers Equals Rally

199 days to the final high!!

I had said in my last post that I thought it looked like we were going down again because the Nasdaq 100 positive/negative number had gotten up to where we had topped out the last couple times, which was 3.43. But just showing how fast things can change, making my short-term predictions pretty worthless, that 3.43 number dropped all the way down to 1.75 the very next day, which is exactly the number we've gotten down to when the last couple rallies started. And the result is the large up days on Friday and today (Monday). So now it looks more than ever like we have begun the largest up leg of this long move up, assuming we are in fact playing out the three peaks and domed house pattern, which I'm pretty convinced that we are. At a minimum, if this is that big move up, we have to move above the previous highs in most areas of the market set last April. Keep in mind that I'm not ruling out one final move back down to the lows from here.

If we are taking off on the big step up, then we could possibly have a way of counting almost to the exact day of when the all-important final high will come in. I don't know how accurate it is at all, not at all. But I do know the three peaks and domed house pattern is a classic standard in the pattern business. And if you'll go back two posts in my blog, you'll see that from the final point before the big move up, all the way to the final high in the domed house pattern, is listed as 7 months and 10 days. If we are playing this pattern out, that low before the big move up came in on October 3. So then I wonder how you count 7 months. Calendar months? I'm going to count a month as 30 days, multiply it by 7 months, plus 10 days, equals 220 days. So we have 220 days from October 3, 2011 until we might be having that final high. I'm not forecasting that at all. I've never watched this pattern before and counted the days to see if it is accurate. I'm just watching out of interest. And just for fun, I'll post how many days remain at the top of my blog. I believe there is a very good chance it will happen, just because I'm amazed how accurately we are tracing it out right now.

That would put us in the middle of May, well before the presidential elections of 2012. Republican candidate could be looking good by the fall.

Rob