Fighting fear on all fronts
When it comes to the Dow, fear of heights is on full display. For the past five months, commentators were warning of a significant crash which was "inevitable". By Daryl Guppy
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FEAR runs through these notes. Fear of heights and fear of being wrong and fear of admitting the error. These fears are foolish.
Fear of heights is on full display when people think about the Dow Jones Industrial Index. In January commentators were telling us to prepare for a significant crash which was supposedly inevitable. This mantra has continued for the past five months. In January we set an upside target for the Dow at 21,000 using chart projection methods. The target was achieved in March.
The 21,000 level is a significant resistance level, but it's not the end of the Dow uptrend. In the short term, the upside target is 21,600. In the longer term, the Dow's target is near 23,700.
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