The late technician, George Lindsay described an 8-year interval as part of his 22-year Overlay (An Aid to Timing, SeattleTA Press, 2012). He wrote that the high (or "moment of truth") at the end of the interval is often followed by a harsh 2-3 month decline followed by an approximate 5-month rally in equities.

With the Dec 2014 high marking 8years, 5months since the low in July 2006 (and fitting the template for the 22year Overlay) a 2-3 month decline would match expectations for a 14m low in March.

A 5-month rally from March comes very close to the seasonal expectation for a high in early Sept in pre-election years (chart: 1943-2011).

Pre-Electoin Years

To get your copy of the January Lindsay Report from SeattleTA, please click here.

Ed Carlson, author of George Lindsay and the Art of Technical Analysis, and his new book, George Lindsay's An Aid to Timing is an independent trader, consultant, and Chartered Market Technician (CMT) based in Seattle. Carlson manages the website Seattle Technical Advisors.com, where he publishes daily and weekly commentary. He spent twenty years as a stockbroker and holds an M.B.A. from Wichita State University.

© 2015 Copyright Ed Carlson - All Rights Reserved

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