MarketPulse Summary

Market Overview

The US stock benchmarks have shown slight rebounds as President Trump continues efforts to stabilize market sentiment amidst ongoing geopolitical tensions. The conflict has now entered its fifth week, raising investor concerns about potential further deterioration before any resolution is achieved.

Key Developments

• The Pentagon has announced preparations for a limited ground operation, drawing parallels to past conflicts in Afghanistan and Iraq.
• President Trump's social media message helped to alleviate some market anxiety.
• Federal Reserve Chair Jerome Powell reassured markets during a speech at Harvard, emphasizing the Fed's capability to manage current economic challenges and expressing optimism about the economy.
• Powell's comments regarding private credit stress not contaminating the broader financial system were particularly well-received by investors.

Market Sentiment and Technical Analysis

Despite a rebound in WTI Crude prices above $100 and a strengthening US dollar, market participants remain cautious. All US benchmarks are experiencing rallies, with easing yields across the board. However, there is skepticism about the sustainability of this upward movement, as it may merely represent a temporary retracement without a long-term solution in sight.

Technical Levels for Major Indices

Dow Jones

The Dow Jones has shown a mini-bullish hammer formation on the 4-hour chart, indicating a potential short-term bullish trend. Key resistance levels are identified at:

• 45,700 to 45,900 (Momentum Pivot)
• 46,270 (Channel top)
• 47,000 (Major resistance)

Support levels include:

• 45,280 (January 2025 highs)
• 44,840 (Channel lows)
• 43,500 to 43,750 (Major support)

Nasdaq

The Nasdaq has struggled, recently falling below its major support level of 23,000. Key resistance levels are:

• 23,300 to 23,400 (September 2025 Pivot)
• 24,450 to 25,550 (Long-term resistance)

Support levels are:

• 22,900 to 23,000 (Major support)
• 22,600 (August 2025 Support Zone)

S&P 500

The S&P 500 has bounced off its psychological support at 6,300 but remains in a long-term bearish trend. Key resistance levels include:

• 6,442 (Current Pivot)
• 6,570 to 6,600 (Failed double bottom resistance)

Support levels are:

• 6,360 to 6,380 (Key support)
• 6,300 (Psychological level)

Conclusion

While the market shows signs of a rebound, caution is advised as the geopolitical landscape remains uncertain. Investors should monitor key technical levels and stay informed on developments that could impact market sentiment.