Dow Jones, Nasdaq 100, S&P 500: How long can the winning streak last? Current analysis

Dow Jones, Nasdaq 100, S&P 500: How long can the winning streak last? Current analysis

According to a report by stock3.com, the US indices continued their winning streak yesterday, rising for the seventh or eighth day in a row. The Dow Jones, Nasdaq-100 and S&P 500 are on an upward trend, but show signs of overbought levels and bearish divergences.

If we look at the facts, the development of the Dow Jones points to an impending breakout above the resistance area around 34,147 points. If this happens, the index could rise in the short term into the area of ​​the downward trend since August 1st. A failed breakout attempt, however, could lead to losses of up to 33,852 points.

The Nasdaq 100 remains in overbought territory and is also showing signs of bearish divergence. A possible setback could lead to losses of up to 15,160 points if the index does not break out directly above 15,333 points.

The S&P 500 is also approaching resistance at 4,393 points. Despite the seven days of gains in a row, overbought values ​​and bearish divergences can also be observed here. A short-term consolidation is likely and could lead to losses of up to 4,319 points, which would close the gap from November 3rd.

Current developments suggest an impending correction as indices are in overbought territory. Consolidation or possible levies could be the market's next steps. As a financial expert, I therefore see a critical phase approaching the financial markets that should be monitored in the coming days.