Stocks explode higher; The peace deal is seemingly near – Dow Jones, Nasdaq and S&P 500 Intraday Outlook

• US Stock Benchmarks are back on the bullish routes as Axios reveals a US-Iran deal shaping up
• Up 1% across the board, Stock Markets are back in ecstasy, and nothing seems to be stopping the rally
• Exploring Technical Levels for the Dow Jones, Nasdaq and S&P 500

US Stock Benchmarks are aggressively back on the bullish route today, energized by breaking reports from Axios revealing that a definitive US-Iran peace deal is finally shaping up.

The overnight collapse in crude oil—now plunging roughly 8% on the session—is officially being confirmed by a much softer, highly optimistic geopolitical narrative.

Traders are actively preparing for a formalized peace agreement. With reports indicating that even Israel was caught off guard by the rapid pace of these recent diplomatic developments, this could truly be the fundamental confirmation that institutional investors have been praying for since the initial ceasefire was implemented.

US stock markets have risen about 1% across the board in the morning session, helped by recent geopolitical relief and Dow Jones is now coming quite close to the 50,000 level for the first time since early February.

Wall Street is very optimistic, and the rally continues as investors look ahead to Friday's important Non-Farm Payrolls (NFP) report.

Furthermore, with the highly anticipated summit between President Trump and China's Xi Jinping rapidly approaching, traders are growing increasingly optimistic. The sheer gravitational pull of this upcoming superpower meeting is keeping markets buoyant, allowing them to completely shrug off the sporadic, early-week Iranian strikes on Gulf nations.

Market participants are now aggressively positioning for a pursued, sustained breakout across all major US indexes. However, to keep this historic momentum alive, bulls will need concrete fundamental confirmation from the upcoming macroeconomic train: Friday’s NFP report, followed immediately by crucial CPI and PPI inflation data next Wednesday.

Let's dive into intraday charts and trading levels for the Dow Jones Industrial Average, Nasdaq Composite, and S&P 500.

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The market rally is quite explosive, particularly among the highest beta sectors including the ever-so-strong Semiconductors and Tech in general, with Consumer services also marking a huge return after suffering since the beginning of the year.

Naturally, Energy and defensive sectors are struggling from the latest narrative, but all of this is pointing to a broad-Index buying with a few local plays in Semis.

The DJIA is extending to a +1% rise which retested 50,000 yet again without being able to breach the key level.

Per candle action is undeniably bullish, with tight bull channels breaching the 4H 50-period MA but looking out to the bigger picture, the price action will have to clearly break above the past week highs to avoid a double top.

• Breaking 50,000 and closing above confirms the rally to new all-time highs.
• Rejecting here however would maintain the 1,000 point range, with more bearish potential if the narrative sours.

Dow Jones technical levels for trading:

Resistance Levels

• 49,900 to 50,000 Resistance and Early 2026 Highs (testing, double top?)
• ATH resistance 50,400 to 50,500
• All-Time Highs 50,544

Support Levels

• Major Pivotal support and range lows – 49,000 to 49,100 (short-term bearish below)
• Momentum Support 48,500
• Pivotal Support at 48,000 (mid-term bearish below)
• Mini Support 47,400 to 47,600

Even with an overbought RSI, Nasdaq is ruthlessly bouncing to new highs, smashing daily beyond its previous session's record.

Reaching the 28,500 level brought with it some profit-taking, but late-trend buyers are bringing the action back to the daily highs.

A push beyond the session highs will test the 28,700 peace bull channel lower bound – Watch for reactions around there.

Nasdaq technical levels of interest:

Resistance Levels

• 28,500 psychological resistance (morning highs)
• 28,700 mini-resistance at channel lower bounds
• 29,000 potential resistance 2

Support Levels

• 28,000 Major psychological resistance now Pivot (and channel highs)
• 27,500 micro-support
• Pivotal Support at 27,000 (4H 50-period MA)
• Mini-support 26,600 to 26,750
• Prior ATH Support 26,200 to 26,300
• War Support 25,000 to 25,250
• Early 2025 ATH at 22,000 to 22,229 Support

The S&P 500 is also bullying through new record highs, currently testing its key psyhcological levels in a continuous price discovery.

Except if the narrative changes, nothing should be barring the road to 7,400.

S&P 500 technical levels of interest:

Resistance Levels

• 7,350 session highs
• 7,400 Channel extension potential resistance

Support Levels

• Key support Zone 7,180 - 7,200 (4H 50-period MA)
• 7,100 psychological level
• Prior ATH Pivot 7,000 to 7,020
• Minor Support 6,880 to 6,900
• Pivotal Support 6,750 to 6,770
• 6,300 psychological level (War lows)

Keep track of WTI Crude and the latest headlines throughout the week to stay ahead of the curve, with the tone increasingly worsening.

Safe Trades!

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