Below is the updated Altimeter for the Dow Jones Industrial Average for the 29-year period and the 6-year period. The Altimeter outlines the range of the DJIA for both the upside and the downside.
The current upside target is 24,485. However, since 2002, the Altimeter has had three resistance levels at 47 to 51 without going much further. At some point, the index will exceed the 51 level. Our aim is to see it above 47 first.
The downside risk is the most important element to watch for. In this regard we’re focused on the 18,575 level as the downside target. However, the 18,575 level can’t be achieved without first going through the 21,530 level. This, 21,530, happens to be the 50% Principle for the Altimeter. Therefore, the chart below is the outline of 21,530 as our next expected downside target.
We believe that the 21,530 is the next downside target based on Edson Gould’s Altimeter.