S&P 500 and Dow Jones All-time Highs – Stocks Continue the 2026 Freedom Rally

Author: Elior Manier

Date: January 6, 2026

Market Overview

Following a strong market opening, stocks are experiencing a consistent rally, primarily driven by positive sentiment surrounding recent U.S. operations in Venezuela. This rally is not limited to energy stocks but is broad-based, indicating a renewed confidence in U.S. economic policy.

Geopolitical Context

The current market dynamics reflect a shift in perception regarding U.S. foreign policy. The "America First" strategy is evolving from an isolationist view to one that emphasizes U.S. interests on a global scale. Traders are drawing connections between various geopolitical events, including:

• Dismantling of Iran's nuclear capabilities
• Improving relations with Russia
• Intervention in Venezuela

President Trump is seen as reviving the Monroe Doctrine, now referred to as the "Donroe Doctrine," which emphasizes U.S. dominance in the Western Hemisphere.

Market Performance

As retail and institutional investors deploy year-end bonuses into the market, the geopolitical assertiveness is providing a robust backdrop for equities. Major sectors leading the rally include:

• Semiconductors
• Healthcare
• Industrials

Despite the overall positive sentiment, major tech stocks like Apple, Tesla, and Google are lagging behind.

Technical Analysis

Dow Jones

The Dow Jones is experiencing a rally, recently breaching the psychological level of 49,500. Key resistance and support levels include:

• Resistance: 49,520 to 49,550, 50,000
• Support: 48,870 to 49,000, 48,000

Nasdaq

The Nasdaq is gaining momentum, particularly in software and semiconductor sectors. Key levels to watch are:

• Resistance: 25,700 to 25,850
• Support: 25,500, 25,000

S&P 500

The S&P 500 is breaking new record highs, with a focus on the following levels:

• Resistance: 6,956 (previous ATH), 7,001
• Support: 6,910, 6,800

Conclusion

The market outlook for 2026 appears positive, driven by geopolitical developments and strong sector performance. Investors are advised to monitor upcoming economic reports, particularly the Non-Farm Payrolls, which may influence market sentiment.

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