Market Analysis Summary - February 5, 2026
Key Market Movements
The SP500 index attempted to settle below the 6800 level as traders reacted to a disappointing JOLTs Job Openings report. The report indicated a decrease in job openings from 7.146 million in November to 6.542 million in December, falling short of the analyst consensus of 7.2 million. Additionally, the Initial Jobless Claims report showed that 231,000 Americans filed for unemployment benefits, exceeding the forecast of 212,000.
The NASDAQ index tested the 24,500 level, reflecting a pullback in tech stocks, with a notable decline in the Strategy stock, which dropped by 14%. The index is under pressure as Bitcoin fell below the $66,000 mark amid a broader crypto market sell-off.
The Dow Jones index also retreated, declining towards the 49,000 level, with Amazon among the biggest losers, down by 3.7%, amid concerns regarding AI spending.
Technical Analysis
The SP500 is currently trying to settle below the support level at 6790 – 6800. If successful, it may move towards the next support range of 6720 – 6730. The NASDAQ is facing pressure, and if it settles below the support at 24,700 – 24,750, it could drop to the next support level of 24,250 – 24,300. The Dow Jones has a nearest support level at 48,700 – 48,800, with a potential test of 47,900 – 48,000 if this level is breached.
Market Sentiment
The overall market sentiment is bearish, with most sectors experiencing losses. Basic materials stocks are particularly affected by the strong sell-off in silver markets. The RSI for the NASDAQ is nearing oversold territory, indicating potential for further downside momentum if negative catalysts arise.
Conclusion
As the market reacts to economic data and sector-specific concerns, traders should remain vigilant and consider the implications of these movements on their investment strategies. The current trends suggest a cautious approach as the indices test critical support levels.