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.
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!
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%
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!
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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