Fundamentally and chart-wise, the end of this rally is on the immediate horizon, meaning that it is likely that selling interest will begin to be seen by the end of this week.
The Fed is expected to leave rates unchanged on Wednesday (neither raise nor lower them) and given that is what is expected, it is not likely to give any ammunition to the bulls if that happens. The weekly closes are important this week, given that if no new all-time highs are made in either the DOW or the SPX after the last 2 weeks of red occurring, the bears will get new ammunition with which to push downward. And then also on Friday, the monthly closes occur and if they are in the lower half of the monthly trading ranges (DOW below 47843, SPX below 6888, NASDAQ below 25412 and the RUT below 2608), it will strongly suggest that February will be a red month (as the seasonal tendency is to be). It is also important to note that the DOW has generated 9 green months in a row and has increased in value 18% during that time, meaning that a correction to the rally is way overdue and highly likely to begin to happen in February. <p>
Adding to all of this, the US economy is showing multiple, distinct signs of cooling down and slowing from the robust, rapid growth experienced in mid-2025, according to data from late 2025 and early 2026. While a recession is not currently in effect, key indicators suggest a "low-hire, low-fire" environment is putting pressure on both consumers and businesses. Such a tangible fundamental scenario, does suggest that selling interest will rise beginning this week.