S&P pattern

The S&P 500 index is in the progress of potentially forming a “Three-Peaks and a Domed House” pattern as shown in the chart below.

My version of George Lindsay’s basic model uses a macro or “phase-counting” approach which is different from Lindsay’s classical micro approach (which uses “number-counting” from 1 to 28) in that it divides the “Three Peaks and the Domed House” pattern into five major phases as follows:

1. Three Peaks
2. Basement
3. First Floor
4. Roof
5. Plunge

Currently the S&P 500 index is in a phase transition from the “Basement” phase (bear trap) to the “First Floor” phase with a sharp advance wave from point 14 toward point 15 according to George Lindsay’s original model (click the graph to see a larger image). The “First Floor” phase is projected around 1360 for the S&P 500 index. The current pattern tracking with model stands true until proven otherwise.

Chart for week-ending November 11, 2011 (Close 1263.85)

Chart for week-ending November 4th, 2011 (Close 1253.23)