Stock Markets are hesitant on the Memorandum – Dow Jones, Nasdaq and S&P 500 Intraday Levels

• Markets are rebalancing from Nasdaq to Dow Jones as risk-appetite is staying stable
• Traders are still remaining hopeful due to the pricing of a peace process with a deal pending
• Exploring Technical Levels for the Dow Jones, Nasdaq and S&P 500

US stock indexes are going through a steady rebalancing today, with market risk appetite holding steady. Instead of a big sell-off, large investors are moving money out of the tech sector and into the more stable blue-chip stocks in the Dow Jones Industrial Average.

Traders remain deeply hopeful about the broader macroeconomic backdrop, largely because the tape has already priced in the Traders are optimistic about the overall economic outlook, mainly because the market has already factored in the details of the US-Iran peace process.

The new Memorandum of Understanding (MoU) is the main reason for this positive mood, as it aims to settle the last major disagreements between the two countries. With the risk of energy supply problems now off the table, investors feel comfortable staying invested in stocks, even if the market's short-term gains are slowing down.

One problem is that the latest news came more pessimistic than expected, with Trump announcing that he is not satisfied with the latest Iranian Deal – So that remains a story to develop.

Upon hitting that historic target, short-term sellers immediately stepped into the tech sector to lock in massive profits, subsequently using that freshly generated liquidity to buy back the underperformed Dow Jones instead.

This classic sector rotation is keeping the broader market entirely stable, capping the downside while investors patiently await the next wave of concrete geopolitical headlines to confirm the finalized treaty.

Now, let’s take a look at the intraday charts and trading levels for the Dow Jones Industrial Average, Nasdaq Composite, and S&P 500.

Discover:

• The Dollar contradicts the peace trade – EUR/USD, GBP/USD & Dollar Index (DXY) overview
• All about the peace process – North American Mid-Week Market Update
• Cryptos fail to generate momentum continuous confusion – BTC and Ethereum (ETH) Technical Outlook

Bulls resurfaced at the prior ATH (50,500) and are holding the Market in place – Still, keep an eye on the key support and the Pivot level right above (50,800) to determine who has the advantage.

Dow Jones technical levels for trading:

Resistance Levels

• Intraday Pivot 50,800 to 50,900
• Memorial Day resistance 51,100 to 51,200

Support Levels

• February ATH Pivot 50,400 to 50,500 (Short-term Bearish below)
• Pivotal Support – 49,000 to 49,100 (mid-term bearish below)
• Momentum Support 48,500
• Pivotal Support at 48,000
• Mini Support 47,400 to 47,600

Nasdaq wicked to new highs but is back once again below the 30,000 level, indicating some more doubts around immediate pricing – Keep track of the latest news to see if more upside is to be warranted or a correction could come.

Nasdaq technical levels of interest:

Resistance Levels

• 30,300 Daily Top and ATH
• 29,850 - 30,000 Memorial Day top Resistance
• Current ATH 30,327 on the CFD

Support Levels

• 29,500 - 29,600 Pivot
• 29,100 - 29,250 momentum support (short-term bearish below)
• 28,000 minor support
• Prior ATH Support 26,200 to 26,300

The S&P 500 is forming an intraday double top at 7,557, indicating that some trouble could be coming on the short-term.

The action remains bullish long term but the latest news are clouding the picture.

S&P 500 technical levels of interest:

Resistance Levels

• 7,550 Memorial Day ATH Resistance (double top!)
• 7,525 Past week's ATH Resistance now pivot
• Current ATH 7,557

Support Levels

• 7,450 - 7,460 Minor Support (Short-term bearish below – 4H 50-period MA (7,448)
• 7,400 Key support
• 7,320 to 7,340 Past week retracement
• Pivotal Support 7,250 to 7,260
• Prior ATH Pivot 7,000 to 7,020
• Minor Support 6,880 to 6,900

Keep track of WTI Crude and the latest headlines throughout the week to stay ahead of the game.

These are my final pieces on MarketPulse, so thank you for all who enjoyed the posts since a bit more than a year – I wish you success in the World of Trading and a long life in Markets.

Don't forget to follow me on X (link below), send me messages for any questions and you can check out my website if you want to stay in contact.

Safe Trades!

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