US Market Outlook: Support holds well
The US benchmark indices can rise more
The Dow Jones Industrial Average, S&P 500, and NASDAQ Composite index have shown strong recovery after falling in the first half of last week. The S&P 500 and NASDAQ Composite index both regained all their losses and ended the week with gains of 0.09% and 0.4% respectively, while the Dow Jones saw a marginal decline of 0.27%. Analysts believe that the US benchmark indices have potential to rise further.
The index is supported around 52,700, with resistance near 53,900. A break above this level could push the Dow Jones to 54,750-55,000 in the coming weeks. However, if the index falls below 52,700, a decline to 52,200-52,000 could occur. The S&P 500 index held its support at 7,600, and could reach 7,770-7,800 in the short term if it rises from its recent low of 7,611.20.
A decisive break above 7,800 could propel the index up to 8,000 in the medium term. The NASDAQ Composite index has risen back well after hitting a low of 25,995 last week, suggesting a positive bias to see 27,000-27,200 in the short term. However, a break above 27,200 could trigger an extended rise to 28,000-28,200, with 28,000-28,200 being a crucial long-term resistance zone.
The dollar index has dropped after peaking at 99.85 last week, leaving the short-term outlook uncertain. A breakout above 99.85 and subsequent rise above 100 could be bullish, while a break below 98.50 could push the index down to 98.20-98. The US 10Yr Treasury Yield has also increased as expected, reaching a high of 4.82% and currently hovering around 4.80%.
Support at 4.75-4.70% could limit downside, with the potential to reach 4.95-5% in the coming weeks.
Written by urgent.news from Hindu BusinessLine's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
