Stock Markets stumble from renewed Iran tensions – Dow Jones, Nasdaq and S&P 500 Intraday Outlook

• US Stock Benchmarks are stagnating at their relative tops with Investors progressively concerned about escalation in the Middle East
• While Stocks erased their early morning drops, the price action remains mixed, awaiting for further developments
• Exploring Technical Levels for the Dow Jones, Nasdaq and S&P 500

US stock indexes are holding near their recent highs, but investors are becoming more worried about renewed tensions in the Middle East. As the morning session concludes, sentiment is progressively souring

Last week, stocks hit new records thanks to strong earnings from large companies, but that excitement is fading – The Dow Jones tried to push past the 50,000 mark but could not maintain it as overall market sentiment weakened.

Trading remains mixed and cautious as everyone waits for more news – Markets are, for now, beginning a move to the downside.

Overnight, worries about global tensions increased after reports from the UKMTO about new attacks on merchant ships and tankers in the Strait of Hormuz.

For info, the United Kingdom Maritime Trade Operations (UKMTO) shares important security updates between military forces and the shipping industry, helping track incidents in risky areas (and could be interesting to track for commodity traders).

On top of these maritime threats, new reports of attacks in Dubai, UAE, have raised fears that the conflict in the region is spreading.

The return of tensions is having a big impact on energy markets, and this could progressively spill over to other assets.

WTI Crude prices are steady, staying around $103 to $104, but Brent Crude has jumped more than 2% to reach $111 per barrel – The bigger concern is that Oil prices have remained above $100 for more than a week now.

With warning signs in the commodity market and most corporate earnings already reported, traders are waiting for the next big economic event, so keeping track of the latest fundamental news will be particularly key for this week's trading.

Many are focused on the jobs data due later this week (ADP on Tuesday & Non-Farm Payrolls on Friday), which could add volatility to an already uncertain market, so momentum could stay muted until then.

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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Stock Markets are progressively looking more cloudy as the session unfolds, with most of the Mag 7's easing from their past week's explosions.

The broad picture is still far from fully bearish, with some names still rising strongly like Micron, up another 6% today, Oracle leading Technology services and Finance resisting the more pessimistic mood.

Keep an eye on these moves as they for now are only looking nascent, with low percentages as we speak. Watch out if the panic persists.

The Dow Jones has began an acceleration move to the downside as headlines multiply. With the US rejecting the latest Iranian proposition, sellers are re-entering.

The 49,000 – 49,100 Pivot zone is getting tested. While the action is turning bearish, it is for now more mixed than anything.

• Any move below the pivot zone could quickly accelerate towards 48,500 or below.

Dow Jones technical levels for trading:

Resistance Levels

• Weekend Gap Fill Resistance 49,500 - 49,600
• 49,900 to 50,000 Resistance and Early 2026 Highs
• ATH resistance 50,400 to 50,500
• All-Time Highs 50,544

Support Levels

• Major Pivot – 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

Nasdaq is progressively losing its upside momentum, crossing below its bull channel last week and now breaking its parallel trendline.

Any move below 27,500 may also accelerate a larger pullback, with the first major stop expected at the previous all-time high level (26,300).

• If the tone doesn't sour much further, this could offer decent entries
• On the other hand, breaking it to the downside points to more panic ahead (~25,000 next)

Nasdaq technical levels of interest:

Resistance Levels

• Current All-time highs 27,850
• 28,000 Major psychological resistance

Support Levels

• 27,500 micro-resistance now pivot
• Momentum Pivot 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 only slowly rejecting its Friday highs and the move still looks young, but the bearish morning candle points to at least a test of the lower bound of its low-slope bull channel (7,150).

With momentum increasingly bearish, traders could be looking for short setups.

• Breaking the 7,150 mini-support hints at continued downside back towards the previous all-time highs (7,000) with more downside if the panic continues.

S&P 500 technical levels of interest:

Resistance Levels

• Mini-channel highs 7,260
• All-time highs 7,280

Support Levels

• Channel lows 7,150 - 7,160 (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 and May the 4th be with you!

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