Just last week on 05/20/24 the Dow Jones Industrial Average (DJI) hit its all-time high of 40,0077. Since then, its fallen 4.17% losing more than 1,600 points.
The DJI and Nvidia Corporation (NVDA) hourly chart courtesy of Treading View shows a shocking divergence.
The DJI decline from 05/20/24 has the appearance of a developing Elliott- Impulse wave. Note the weak rally during the 05/29/24 trading session. At the 05/29/24 close DJI had retraced 67% of its 04/17/24 to 05/20/24 rally. In two or three trading days the DJI could reach the 04/17/24 bottom near 37,600.
In stark contrast the NVDA buying mania continues. On 05/29/24 NVDA hit 1,154.92, major long term Fibonacci resistance is at 1,157.
On 05/29/24 NVDA – daily MACD – Histogram and lines were still rising, implying higher prices. NVDA could make a significant top in one or two trading days.
The current DJI drop could be just the prelude to a larger bear market lasting months.
If NVDA begins to decline it could add fuel to a growing bearish fire.
Four Dimension Trading 