Bubble about to burst?

From a technical standpoint, US30 finished 4 waves up (grand cycle), and for now, we are trying to determine at what level we're going to see the end of wave 5 and the beginning of a deep corrective cycle or a possible market crash.

Using the Fibonacci extension tool from the bottom of wave 2 to the top of wave 3 to the bottom of wave 4, we can see 2 major Fibonacci levels which are the 78.6% Fibonacci level at (33200) and the 100% Fibonacci level at (34500).

Because of the $1.9 trillion relief bill that was signed by president Biden 4 days ago, we may see the beginning of the correction at 34500 (100% Fibonacci), but there is also a possibility that wave 5 may end at 33200 as both levels are very critical and highly respected from the market's behavior.

Also, it's not a coincidence that by using the Fibonacci retracement tool, if you project 161.8% from wave 1 and 200% from wave 1 to see where could wave 5 end (Blue and Green lines), you can also see the exact same levels as the 78.6% Fibonacci Extension (33200) and the 100% Fibonacci Extension (34500).

Keep in mind that when we talk about a certain level, we are referring to the zone around this level and not a particular number.

It is still unclear what fundamental news could cause this drop in the stock market. It could be the emergence of new, perhaps deadlier Coronavirus strains causing renewed global lockdowns, issues pertaining to the ongoing vaccination side effects, or even something related to inflation and a sudden change in the Fed's monetary policy...