S&P 500 and Dow Jones All-time Highs – Stocks Continue the 2026 Freedom Rally

Ben Graham · ontem às 20:50

After yesterday's explosive open, stocks are seeing a more muted yet remarkably consistent rally.

With not much else, a single theme is dominating the price action: Wall Street is overwhelmingly approving of the recent US operations in Venezuela.

If the rally were confined solely to energy stocks, it could be dismissed as a targeted sector play. However, with participation broadening across most sectors, the signal is one of renewed confidence in US policy, particularly with the US Dollar rallying back today.

The narrative is shifting. The "America First" approach is no longer being viewed merely as isolationist, but as an aggressive strategy placing US interests at the front of the global stage.

A mistake from most is to look at today's situation from the glance of the 2000 peace regime when one should look 100 to 200 years back.

Traders are connecting the dots between the dismantling of Iran's nuclear capabilities, the tentative thawing of relations with Russia, and now, the intervention in Venezuela coupled with fresh warnings to other nations.

President Trump appears to be resurrecting the Monroe Doctrine for the modern age—dubbed by many as the "Donroe Doctrine."

With retail and institutional participants alike deploying their year-end bonuses and holiday capital into the markets, this geopolitical assertiveness is providing a powerful backdrop for equities to run higher.

Screenshot 2026-01-06 at 3.05.07 PM — Current picture for the Stock Market (15:06 P.M. ET) – Source: TradingView – January 6, 2026

The current picture extends yesterday's broadly positive mood, with the largest names of Stock Markets (like Apple, Tesla or Google) struggling at the cost of virtually all the other sectors.

Semiconductors, Healthcare and industrials are leading the Market picture, with Amazon also demarking itself after weeks of muted performance.

Let's dive into our daily intra-session charts and trading levels for the major US Indexes: Dow Jones, Nasdaq, and S&P 500.

Dow Jones 4H Chart – 49,500 Reached!

Screenshot 2026-01-06 at 3.23.24 PM — Dow Jones (CFD) 4H Chart – January 6, 2026 – Source: TradingView

The Dow is running higher again, powered by the general rally in traditional sectors.

Once again, the Dow is on the front of the Freedom Rally – Now breaching the 49,500 psychological level, it will need to close around its highs to pursue its path higher.

Watch for the overbought conditions which may trigger some slowdown in the buying – consolidation at the highs adds further chances of a continued breakout.

Dow Jones technical levels for trading:

Resistance Levels

Potential Fibonacci Target 49,520 to 49,550
Potential Fibonacci Target and Hourly Channel highs 50,159
49,550 Session highs and Running
50,000 Psychological Level and Higher timeframe Fib Target (50,159)

Support Levels

Christmas ATH as current pivot – 48,870 to 49,000
November ATH 48,300 to 48,500 mini-support
Psychological Support at 48,000
Key Support 47,000 (+/- 150) and MA 200
45,000 psychological level (next support and main for higher timeframe)

Nasdaq 2H Chart – Still not back to 100%

Screenshot 2026-01-06 at 3.33.03 PM — Nasdaq (CFD) 4H Chart – January 6, 2026 – Source: TradingView

The Nasdaq is catching up some momentum again despite its biggest names lagging, powered by huge performance in Softwares and Semiconductors.

After breaking yesterday's triangle formation to the upside, Bulls will have to push beyond the resistance zone between 25,700 to 25,850.

Nonetheless, the ongoing rally is strong and suggests further upside – At least until Thursday when traders prepare for the Non-Farm Payrolls report.

Nasdaq technical levels of interest:

Resistance Levels

intermediate resistance 25,700 to 25,850
All-time high resistance zone 26,100 to 26,300
Current ATH 26,283 (CFD)

Support Levels

25,500 Triangle formation highs (broken)
Pivot 25,500 +/- 75 pts
Pivot now Support 25,000 to 25,250
24,500 Main support
Early 2025 ATH at 22,000 to 22,229 Support

S&P 500 4H Chart – New Record!

Screenshot 2026-01-06 at 3.42.43 PM — S&P 500 (CFD) 4H Chart – January 6, 2026 – Source: TradingView

The S&P 500 is officially breaking new record highs, powered by the ecstatic and widespread good mood in Wall Street.

A further extension beyond the 6,950 record will be required for further confirmation of an All-time high run.

For now, things are looking very positive to start 2026. Nevertheless, keep an eye on reactions ahead of the NFP report.

S&P 500 technical levels of interest:

Resistance Levels

Dec 26 Christmas All Time-Highs 6,956 (breaking)
1.382% Fib-Extension potential resistance at 7,001

Support Levels

6,910 4H 50-MA Support
6,800 Psychological Pivot and Range lows
Support 6,720 to 6,750 and 8H MA 50
6,400 Major psychological support

Safe Trades and a Successful 2026!

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