Market Analysis Summary: Dow Jones & Nasdaq Outlook
Author: Elior Manier
Date: February 5, 2026
Market Overview
The stock benchmarks are experiencing a downward trend following recent sessions marked by divergence. The tech sector is facing significant outflows, impacting risk assets negatively. The market's response to recent economic data has been tepid, indicating a shift in sentiment.
Key Economic Indicators
Recent data releases showed a notable decline in job openings (JOLTS at 6.542 million vs. 7.2 million expected) and a surge in layoffs, the highest for January since 2009. This has contributed to a prevailing sense of uncertainty in the markets.
Market Sentiment
Despite dovish data, market sentiment remains low, with a broad deleveraging from previously favored trades. Bitcoin has fallen below $70,000, and metals are under pressure as profit-taking occurs.
Technical Analysis
Dow Jones
The Dow Jones is currently consolidating within a major upward channel, with key support at 48,000. Resistance levels are identified between 49,000 and 50,000, with a potential breakout target of 51,000. A break below 48,000 could lead to a test of 45,000.
Nasdaq
The Nasdaq is showing less resilience, with a volatile range between 24,000 and 26,000. A close below the 24,500 to 25,000 pivot could trigger further selling pressure. Key support is noted at 23,000, with a potential drop to 20,000 if bearish momentum continues.
Conclusion
Overall, the market outlook remains cautious, with significant attention on upcoming economic data releases and geopolitical developments. Traders are advised to monitor key technical levels and market sentiment closely.