In 2011 Dr. Hank Pruden published a remarkable Point and Figure chart study, which called for a new bull market in stocks. The horizontal PnF counting method, as applied by Dr. Pruden, revealed a price objective of 17,600 / 19,200. That count produced a whopping 11,100 Dow Jones Industrial Average (INDU) points and was added to the countline of 8,100 and the low of 6,500. A big and bold count. During 2014 the minimum count was achieved. Thereafter a Reaccumulation formed. In July of 2016 a new uptrend began. Dr. Pruden, Roman Bogomazov and I reevaluated the original base count and the Reaccumulation to determine if there was more fuel in the tank for a continuation of the bull market. The result of this study was published here in July of 2016. Please take a minute and read this post (click here for a link). Also read the article where Dr. Pruden makes his legendary market call (click here for a link and turn to page 29).
When ‘Point and Figure Pie in the Sky?’ was posted, the INDU was jumping to a new high and clearing the 18 month Reaccumulation trading range at 18,600. In that blog post, the case was made for increasing the original Accumulation PnF count and making even higher price projections. In addition, the just completed Reaccumulation PnF count confirmed this higher price potential. New objectives were generated to approximately 22,000 / 24,000. Let’s now update the progress of the INDU on the way to these price objectives.