The S&P 500 and NASDAQ Composite indices surged for the sixth consecutive week. The indices were up 2.33 per cent and 4.51 per cent, respectively. The Dow Jones Industrial Average remained higher, but was stable last week. Overall, the US benchmark indices keep their uptrend intact. There is room to rise further going forward.

Dow Jones (49,613.97)

Weekly chart indicates that the index is stuck inside a sideways range of 48,700-50,150. Cluster of supports in the 49,000-48,500 region. That leaves the bias positive for the index to make a bullish breakout above 50,100 eventually. Such a break can take the Dow Jones higher to 51,300-51,500 in the coming weeks. It will also keep the upside open to see 52,200 over the medium term.

As mentioned last week, the outlook will turn negative only if the index declines below 48,400. That will bring into the picture the danger of a fall to 46,000-45,000.

For now, our preference is to see a rise to 51,500 and higher.

S&P 500 (7,398.92)

The rise last week indicates that the upmove is gaining momentum. There is no immediate resistance available. So, if the momentum sustains, the rise to 7,600 that we have been expecting can happen immediately. An extended rise to 7,750 is also a possibility. Any intermediate dips can find support in the 7,200-7,100 region.

The region around 7,750 is a strong resistance. So, there are good chances for the S&P 500 index to reverse lower towards 7,500-7,400 and even lower after this rise.

NASDAQ Composite (26,247.08)

The rise to 26,500 is happening in line with our expectation. The strength in the recent rise keeps the chances high for the NASDAQ Composite index to breach 26,500. Such a break can take it further higher to 26,700-26,750, the next important resistance zone.

Failure to rise past 26,750 can trigger a corrective fall. That will have the potential to drag the NASDAQ Composite index down to 25,000 and even 24,000 thereafter.

In case the index manages to breach 26,750, then the upside can extend to 27,300. Thereafter the above-mentioned correction can happen.

Dollar Outlook

The dollar index (97.85) seems to be struggling to rise. The crucial support level of 97.50 can be tested this week. It is important for the index to sustain above this support rise back to avoid more fall. Failure to do that can drag the dollar index down to 96 and even 95 in the coming weeks.

Resistance for the index is around 98.50.  A rise above it will give some breather and take it higher to 99.

 US Treasury Yield

The US 10 Year Treasury Yield (4.36 per cent) has come down after making a high of 4.45 per cent initially. The overall picture remains positive. However, a dip to 4.3-4.25 per cent looks possible in the near term. A fresh rise thereafter can take the US 10 Year Treasury Yield higher to 4.5 per cent. It will also keep the upside open to see 4.6 per cent eventually in the medium term.

Published on May 9, 2026