In this video: Chief Market Strategist Gareth Soloway dissects the massive volatility in the major indices following Friday's rally. While the Dow Jones crossed the historic 50,000 mark, Gareth explains why this milestone is likely a "bull trap" designed to lure in the last of the retail money before the rug pull. Video by Gareth Soloway.
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Key Insights
As of February 6, 2026, the S&P 500 (^SPX) trades near 6,932.30, having recently tested highs near 7,000. The index has maintained strong upward momentum, with a 52-week range of 4,835.04 to 7,002.28. Analysts project continued, albeit moderate, growth for 2026, with year-end targets ranging from 7,100 to 8,000.
-S&P 500 (SPX): The trendline breakdown from the April tariff sell-off low is confirmed. Gareth shows why "rip your face off" rallies are a hallmark of bear markets, not bull markets, and why a Head and Shoulders pattern could trigger the next leg down.
-NASDAQ (NDX): A stunning parallel channel dating back to the 2023 lows predicted the exact top. Gareth reveals the "Bear Flag" formation that signals a rollover is imminent.
-Dow Jones (DJI): The chart of the day. Gareth analyzes the perfect tag of the 50,000 level, which coincides with a major trendline resistance dating back to October 2023. When price is below this line, it is resistance—and the rejection here could be violent.
-Plus, the macro headwinds are building: China is instructing banks to buy less U.S. debt, signaling a shift that could spike yields even further.
Ignore the "Dow 50k" party hats. The charts are screaming sell.
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