S&P500, DJI and Nasdaq New ATH Followed By Steep Correction

The recent market analysis has revealed significant movements in major indices, with the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite all achieving new all-time highs.

S&P500 (SPX) Reaches New ATH At 5,342 And Correctly Steeply

The S&P 500 reached a new peak at approximately 5,342, only to experience a swift correction within the same week, dropping by about 1.6%. Critical support for the S&P 500 now lies at the previous high of 5,265, with further Fibonacci supports at approximately 5,192 and 5,099 should this level fail. Additionally, the MACD histogram is trending bearishly lower, suggesting a potential bearish crossover, while the RSI remains non-committal.

DJI Reached A New ATH At 40,095

For the Dow Jones Industrial Average, having surged to around 40,095, it subsequently corrected by 2.7% within a week, touching a substantial Fibonacci support at 39,001. Should it hold, a bullish rebound might be anticipated; otherwise, further support is visible at 38,300. Current indicators on the weekly charts display bearish tendencies, with bearishly crossed MACD lines and a bearish histogram tick, compounded by a significant bearish divergence in the RSI.

Nasdaq Established A New ATH And Corrects Sharply

The Nasdaq Composite also notched a new high at approximately 16,996 before undergoing a significant correction of about 1.9%. Here, the MACD indicators are also hinting at bearish trends, with potential support levels at roughly 16,450 and 16,539, and if breached, further support at 16,318 and 15,850.

In contrast, the weekly chart for the Nasdaq shows a bullish trend in the MACD histogram, which might soon lead to a bullish crossover despite the RSI indicating a bearish divergence.