US indices: Will the gains continue or is there a risk of a correction? Analysis of Dow Jones, Nasdaq 100 and S&P 500

US indices: Will the gains continue or is there a risk of a correction? Analysis of Dow Jones, Nasdaq 100 and S&P 500

According to a report by stock3.com, the US indices rose again yesterday, albeit only moderately. The question that now arises is whether the winning streak will break today or continue. The Dow Jones, Nasdaq-100 and S&P 500 each posted a winning streak lasting several days, but this led to an overbought market situation.

The Dow Jones appears poised for a pullback as the index is overbought in the short term. Should a setback occur, a fall back to around 33,852 points would be expected. On the other hand, there is a possibility of a breakout above 34,147 points with a subsequent rise to 34,700 points. However, a drop in the Dow Jones below 33,852 points could lead to further consolidation towards 33,455/52 points.

The Nasdaq-100 is also in an overbought position and is vulnerable to a pullback. Such a pullback could lead to a decline to around 14,930 points. After a potential consolidation, there would be a possibility of a breakout above the resistance zone and a continuation of the rally towards the annual and later all-time high.

The S&P 500 also posted a six-day winning streak but is in an overbought market situation. The index formed an inside candle yesterday and is in a steep short-term rally. If the S&P 500 falls below Friday's gap, further pullbacks could be expected.

These overbought market situations and potential pullbacks could lead to volatility and price corrections in the coming days. As a financial professional, it is important to closely monitor these developments and adjust portfolios accordingly in order to be prepared for possible market movements.