The indices have plummeted sharply, and whether you believe this is due to Trump’s tariffs or would have happened anyway, regardless of the trigger, the reality remains the same.
Both the S&P 500 and Nasdaq 100 are officially in bear market territory—defined by a decline of more than 20% from their peaks. Meanwhile, the Dow Jones Industrial Average is down approximately 15%.
Given these facts, the big question is: Are we in a bear market, or is this a fantastic buying opportunity? 📉📈
Now, let's break down the key levels, potential scenarios, and how to approach the current market environment. 🚀
Dow Jones 30 (DJI): Navigating Key Support and Resistance Levels
On the weekly chart, DJI has been in an uptrend since the pandemic lows of 2020. The double top formation from 45k measured target has already been exceeded, and the index is now approaching a critical confluence support zone between 37k and 37,700.
📌 My Outlook:
• I believe this support will hold in the near future, presenting a buying opportunity.
• Resistances: 40k and 41,600 are important technical levels and potential targets for bulls.
💡 Alternative Scenario:
• If DJI starts rising without testing the long-term confluence support, I will focus on selling opportunities, particularly around the 41,500 zone, as we have 2 unfilled gaps from last week.
________________________________________
S&P 500 (SPX): Bear Market Territory, But Still Holding Uptrend (posted main chart)
According to classical theory, SPX is now officially in bear market territory. However, we are still above the ascending trend line established from the 2020 pandemic low, and approaching a confluence support zone around 4,820 - 4,900.
📌 My Outlook:
• I will be looking for buying opportunities if the index continues its decline towards the 4,820 - 4,900 zone next week.
• Target: Filling the first gap at 5,400.
💡 Alternative Scenario:
• If the week begins positively, and SPX doesn’t reach the 4,900 support zone, I will focus on shorting opportunities on gap filling, aiming for a return to 5,000.
________________________________________
Nasdaq 100 (Nas100): Hovering Above Key Support
Unlike DJI and SPX, Nas100 is still well above the ascending trend line from the 2020 pandemic low. However, it is nearing an important horizontal support defined by the 2021 ATH and the 2024 lows.
📌 My Outlook:
• Drops towards 17k or slightly lower could present good buying opportunities, anticipating a potential rise to fill the gaps.
💡 Alternative Scenario:
• If the price rises above 18.500k zone without dipping under 17k I will look for selling opportunities.
Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analyses and educational articles.
Both the S&P 500 and Nasdaq 100 are officially in bear market territory—defined by a decline of more than 20% from their peaks. Meanwhile, the Dow Jones Industrial Average is down approximately 15%.
Given these facts, the big question is: Are we in a bear market, or is this a fantastic buying opportunity? 📉📈
Now, let's break down the key levels, potential scenarios, and how to approach the current market environment. 🚀
Dow Jones 30 (DJI): Navigating Key Support and Resistance Levels
On the weekly chart, DJI has been in an uptrend since the pandemic lows of 2020. The double top formation from 45k measured target has already been exceeded, and the index is now approaching a critical confluence support zone between 37k and 37,700.
📌 My Outlook:
• I believe this support will hold in the near future, presenting a buying opportunity.
• Resistances: 40k and 41,600 are important technical levels and potential targets for bulls.
💡 Alternative Scenario:
• If DJI starts rising without testing the long-term confluence support, I will focus on selling opportunities, particularly around the 41,500 zone, as we have 2 unfilled gaps from last week.
________________________________________
S&P 500 (SPX): Bear Market Territory, But Still Holding Uptrend (posted main chart)
According to classical theory, SPX is now officially in bear market territory. However, we are still above the ascending trend line established from the 2020 pandemic low, and approaching a confluence support zone around 4,820 - 4,900.
📌 My Outlook:
• I will be looking for buying opportunities if the index continues its decline towards the 4,820 - 4,900 zone next week.
• Target: Filling the first gap at 5,400.
💡 Alternative Scenario:
• If the week begins positively, and SPX doesn’t reach the 4,900 support zone, I will focus on shorting opportunities on gap filling, aiming for a return to 5,000.
________________________________________
Nasdaq 100 (Nas100): Hovering Above Key Support
Unlike DJI and SPX, Nas100 is still well above the ascending trend line from the 2020 pandemic low. However, it is nearing an important horizontal support defined by the 2021 ATH and the 2024 lows.
📌 My Outlook:
• Drops towards 17k or slightly lower could present good buying opportunities, anticipating a potential rise to fill the gaps.
💡 Alternative Scenario:
• If the price rises above 18.500k zone without dipping under 17k I will look for selling opportunities.
Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analyses and educational articles.
📈 Forex & XAU/USD Channel:
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Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
📈 Forex & XAU/USD Channel:
t.me/intradaytradingsignals
💎 Crypto Channel:
t.me/FanCryptocurrency
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.