The Dow Jones Industrial Average, S&P 500 are continuing to hold higher. The 2 per cent rise in the Dow Jones indicates that the upmove has resumed after the consolidation. The S&P 500 and the NASDAQ Composite index are stable over the last couple of weeks. Broadly, the uptrend in the US benchmark indices remains intact.

Dow Jones (50,585.07)

The bullish breakout above 50,200 strengthens the bullish case. The Dow Jones can rise to 51,300-51,500 and even 52,000 in the short term. The price action around 52,000 will need a close watch. Failure to breach 52,000 can trigger a corrective fall to 50,000-49,000

The index has to fall below 50,000 to turn the short-term picture negative. If that happens, a fall to 49,500-49,000 can be seen.

For now, allow for a rise to 51,500-52,000 and then watch the price action.

S&P 500 (7,473.48)

The fall in the initial part of the week could not sustain. The index fell to a low of 7,333.68 before rising back sharply recovering all the loss. That keeps the broader uptrend intact. Immediate resistance is at around 7,500. The chances are high to see a break above it. Such a break can take the index up to 7,600-7,750 in the coming weeks.

Key support is at 7,250. The short-term picture will turn negative only if the index declines below this support. If that happens, 7,100 can be seen on the downside.

NASDAQ Composite (26,343.97)

The index has been stuck inside a narrow range over the last two weeks. The price action on the weekly chart indicates good buying interest around 25,700. That keeps the bias positive. A rise to 26,800 looks likely in the short term. A break above 26,800 can take the index higher to 27,500.

Failure to break 26,800 can trigger a fall back to 26,000-25,700.

Dollar outlook

The dollar index (99.32) oscillated between 98.60 and 99.45 all through the week. On the charts, last week’s candle indicates indecisiveness in the market.

The level of 98.60 is a good short-term trendline support. So, as long as the index stays above this support, the bias will remain positive. That will keep the chances high for the dollar index to breach 99.45. Such a break will then take the index higher to 100.50-101 in the short term.

The dollar index has to fall below 98.60 to turn the short-term picture negative. If that happens, a fall to 98.20 and even 97.80 can be seen. Such a fall will also negate the chances of the rise to 101.

As seen from the daily chart, the bias is positive. So, our preference will be to see a rise to 100.50-101.

Treasury Yield

The US 10 Year Treasury Yield (4.56 per cent) surged to a high of 4.69 per cent, but failed to sustain. It has come down sharply from this high. However, this fall looks like just a correction for now within the broad upmove. An important support is in the 4.55-4.5 per cent region.

A bounce from this support zone and a subsequent rise above 4.6 per cent will be bullish to see a rise to 4.8 per cent. From a big picture, a sustained rise above 4.6 per cent will have the potential to take the US 10 Year Treasury Yield up to 5 per cent in the coming months.

Published on May 23, 2026