US markets experienced significant declines during the week, with major indices failing to sustain initial gains. According to reports from The Hindu BusinessLine, the Dow Jones Industrial Average managed to close the week in positive territory at 52,220.21, while the S&P 500 and NASDAQ Composite fell for the second consecutive week. The S&P 500 closed at 7,623.68 and the NASDAQ Composite at 25,955.34, indicating broad-based weakness across US equity markets. Recent technical analysis suggests the S&P 500 is attempting to break out of a symmetrical triangle pattern, with the index finding support at the 50 EMA and testing falling trendline resistance around 7,750.
Technical indicators suggest potential further downside for US benchmark indices, with the S&P 500 showing specific technical patterns that could determine near-term direction. As reported by The Hindu BusinessLine, the Dow Jones faces critical support at 51,730, with a potential bounce from this level targeting 53,500 in coming weeks. The S&P 500 shows weaker charts with crucial support at 7,600, where a breakdown could push the index to 7,500-7,460. Recent analysis indicates that a rise above the 7,750 falling trendline resistance would bring 7,840 and fresh record highs back into focus, while on the downside, sellers need to break below the 50 EMA at 7,685, followed by rising trendline support at 7,650 and horizontal support at 7,620.
The US Dollar Index fell to 101.45 last week before recovering, with strong support identified in the 101.30-101.20 region. According to the analysis, a break below 101.20 would increase selling pressure, potentially targeting 101-100.90. The US Dollar Index is falling on Friday to a two-week low and is on track for its first weekly decline in three weeks, following three consecutive weeks of gains. The dollar has come under pressure, tracking Treasury yields lower as concerns over AI spending in a high-interest-rate environment weigh on investor sentiment. This has prompted a rotation into safe-haven Treasuries, putting downward pressure on yields and the US dollar. The US 10-Year Treasury Yield fell to 4.94% and tested the support level of 4.95%, with potential for further decline to 4.85-4.8% if the yield breaks below this level.
The technical analysis indicates that US markets face continued downside risk, with key support and resistance levels clearly defined across major indices. As reported by The Hindu BusinessLine, the Dow Jones and S&P 500 show weaker chart patterns, while the NASDAQ Composite maintains bearish momentum. Recent developments show the S&P 500 attempting to break out of a symmetrical triangle pattern, with the index finding support at the 50 EMA and testing falling trendline resistance around 7,750. The dollar index's recovery above 101.20 provides some support, though a break below this level could trigger further selling pressure across US markets, particularly as AI spending concerns and high-interest-rate environment continue to weigh on investor sentiment.
