The Stock Market is bleeding – What is going on?

It seemed like nothing could stop stocks in their flawless rally since the April sprint.

Wars, tariffs, a deteriorating labour backdrop, geopolitics — all of it somehow kept resolving into more upside, thanks to peace talks, trade deals, and dovish support from the Federal Reserve.

But sometimes, the market’s worst enemy is the market itself.

Stretched valuations, overbought technicals, insider profit-taking, and growing hesitation among highly leveraged participants have produced a lethal combination of sharp selloffs.

Volatility has been the norm in 2025 — the real concern now is whether these pullbacks from recent all-time highs turn into something deeper.

The picture is red throughout all sectors but tech is starting to lead a pullback that will act as a key element to look at for the rest of the session.

Opportunity or reason to panic? That question always resurfaces in moments like this. The best approach is to stay disciplined: prepare your game plan, manage risk, and take notes.

Keep a close eye on afternoon trading as it will dictate sentiment towards the week-end and has a high chance of spreading to next week.

Let’s dive into the intraday charts and key levels for the Dow Jones, Nasdaq, and S&P 500.

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This week posted a major bull-trap in the DJIA.

A break of a previous downward topline got met with a sharp rally to new all-time highs (48,459), but the selloff that came right after is not the sign bulls want to see to buy again.

Sellers are pushing below the 47,000 level, key for Momentum.

A final support comes in at the uptrend lows combined with the 8H MA 200 (around 46,300). Rejecting to the upside would be sign of a healthy retracement.

However, breaking this would form a not-good-looking price action for investors. Keep an eye on daily charts and session closes.

Dow Jones technical levels of interest:

Resistance Levels

• Current All-time high 48,459
• Resistance zone 47,500 - 47,650
• 8H 50-period MA 47,400 (mini-resistance)
• Psychological resistance at 48,000

Support Levels

• Higher timeframe pivot 47,000 to 47,200 (immediate test, breaking)
• 46,300 trendline and MA 200
• 45,000 psychological level
• 44,400 to 44,500

The Nasdaq led to the downside but is also posting quite a rebound just below previous lows as the prices reached the MA 200 (24,574) and RSI touched the oversold level.

This marks an interesting technical development as a fakeout to the downside could always be a possibility.

Nevertheless, bulls will have to break back above 25,000 and form a candle close to avoid it just being a pullback

Nasdaq technical levels of interest:

Resistance Levels

• Current ATH 26,283 (CFD)
• All-time high resistance zone 26,100 to 26,300
• Intermediate resistance and 4H MA 50 25,700 to 25,850
• Mini-resistance at 25,500 Gap (immediate resistance)
• Current Pivot 25,050 to 25,200

Support Levels

• 24,500 intermediate support (25,574 Daily lows and MA 200)
• October lows 23,997
• Early 2025 ATH at 22,000 to 22,229 Support
• Session Lows 25,450

The Spoose is rallying back above the 6,700 level but the current candle is looking quite indecisive.

Still, an intermediate low has been found at the 200-period MA (6,647) and poses a base for upcoming action.

A mid-session close above 6,700 creates higher probabilities of a return within the broken May Channel.

A close below however may hint at new lows towards the weekly close.

S&P 500 technical levels of interest:

Resistance Levels

• 6,930 (current All Time-Highs)
• ATH Resistance 6,900 to 6,930
• Intermediate resistance 6,830 to 6,855
• Pivot and MA 200 6,720 to 6,750 (testing)

Support Levels

• 6,647 session lows
• 6,680 to 6,700 support
• 6,570 to 6,600 Key support
• 6,490 to 6,512 Previous ATH now Support (4H MA 200 Confluence)

Safe Trades!

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