A review of the three main U.S. stock indices; Dow Jones Industrial Average (DJI), S&P 500 (SPX), and Nasdaq Composite (IXIC) reveals shockingly bearish evidence.
The 15 – minute DJI, SPX, and IXIC chart courtesy of Trading View illustrates their relationship.
Guess which of these indexes does not include Nvidia Corporation (NVDA)?
If you picked DJI you are correct. This chart dramatically shows the current power of NVDA relative to the broader of U.S. stock market. The SPX and IXIC, which both include NVDA were able to make new all-time highs on the NVDA 05/23/24 powerful gap up.
Subsequently the SPX and IXIC both declined in what appears to be Elliott wave Single Zigzag corrections. This implies both indices could soon make new highs.
The DJI from its all-time high made on 05/20/24 looks like an Elliott wave Impulse pattern. If so, this could be the first wave down of a larger developing bear phase. This assumes the next DJI rally will likely fail to exceed its 05/20/24 peak.
The IXIC from its 05/23/24 high to its close on 05/24/24 declined .44%.
The SPX from its 05/23/24 high to its close on 05/24/24 declined .69%.
The DJI from its 05/23/24 high to its close on 05/24/24 declines 1.59% and is down 2.56% from its 05/20/24 all-time high.
Many U.S. stocks have been in a bear market since at least January 2024, some even earlier. The recent action of NVDA is masking a developing bear trend.
If the NVDA rally ends it could signal a multi-month decline for U.S. stocks.
Please see the 05/25/24 blog “Nvidia Nears Major Resistance at 1,157”.
Four Dimension Trading 