Wall Street gaps down, weak dip-buying attempts – Dow Jones and US Stock Market Outlook

• US Stock Benchmarks gapped down severely after the FOMC meeting, dragged lower by rough Global Stock Performance
• Traders are now attempting a short-term dip-buying as Indexes reach key Support levels
• Exploring Technical Levels for the Dow Jones, Nasdaq and S&P 500

The past day's FOMC session wasn't easy on Investor sentiment, as a coordinated Oil–Petrodollar–hawkish–repricing attack played War on Stock bulls.

The downtrend in Global Indexes is now more severe – the pricing out of Cuts, leaving the way open for hikes in Central Banks, was confirmed by the streak of hawkishness resounding in Rate Decision Press Conferences.

The Swiss National Bank, Bank of Japan, Bank of England, and European Central Bank confirmed once again that the rise in Energy commodities and supply shocks would bar the way for any soft prints in Prices, and that, without accounting for the direct effect of Oil price rises on goods, they have also raised concerns about economic growth. Global Central Banks are now back to hawkish.

It's been difficult to justify buying Stocks in this environment – See how Global Stock Benchmarks have struggled.

One particular element that did not help risk sentiment was that Brent prices, which track more closely with ex-American energy prices, have largely decoupled from WTI – Brent spiked back to $116 per barrel overnight and holds right around $110, creating a new wave of anxiety around the globe.

On the North American side, however, WTI Oil is holding below $100 per barrel, and this has been helping to contain the market open.

What is sure at least, is that Metals haven't liked the new rise in Brent the slightest – Gold is down 3% from the previous session and now down 15% from its $5,400 War highs.

The previous session's news around attacks on Iranian and Qatari/Saudi energy infrastructures created the gigantic movement and divergence in commodities.

As long as WTI doesn't form a definite break above $100 and holds above, the Outlook for US Equities should remain more rangebound. More details on our Index analyses below.

Note: Ironically, as I am writing this piece, Oil is attempting a rebound towards $101 from the latest breaking news. Trump TACO'ed again; the US won't ban Crude exports in retaliation from the lack of Allies participation to liberate the Strait of Hormuz.

This will weigh on Stocks particularly if the rally in WTI continues.

US indexes are trying their best to rebound on Support but they will need to form a more decisive rebound from current levels; Below them, there is space for much tougher downside.

Let's spot where today's rough price action is heading by looking at today’s mid-session charts and post-FOMC trading levels for the major US indexes: the Dow Jones, Nasdaq, and S&P 500.

Read More:

• A look around Markets in a scary post-FOMC morning – Market Outlook
• Bank of England leaves interest rates unchanged as war and rising energy prices complicate inflation fight
• Markets Today: European Gas futures soar 25%, Brent hits $119/barrel. Central bank pressure heats up as ECB meeting looms

Except for Energy Minerals and Industrial Services, the entire Market heatmap is getting sold off from the hawkish repricing and lower growth projections.

Tesla is getting hit the hardest, along with Producer Manufacturing and Electronic Technology (was the Tech rebound a dead-cat bounce??)

The DJIA is now standing at a significant support at its August 2025 highs area and War Bear Channel lows.

• Rebounding here would point to a test of the 47,000 Resistance and Channel Top
• Extending the correction below 45,710 would lead to a Bear Channel break and further downside ahead.
  • To get a better idea for the direction, check out the highs of the 1H Doji and lows of the Channel to play for breakouts.

Dow Jones technical levels for trading:

Resistance Levels

• 46,060 Doji Highs (intraday bullish above)
• March 8 War lows Pivot 46,300
• Resistance 47,000 +/- 100 Points (Channel top)
• Pivotal Resistance 47,500 to 47,650
• Key Resistance at 48,000
• 48,400 to 48,500 mini-resistance

Support Levels

• 45,700 to 45,900 August Support & Channel Lows) – Bearish below
• August highs 45,715
• 45,000 psychological level (Main Support on higher timeframe)

Nasdaq is still holding its textbook 24,200 to 25,000 range in the latest action.

Attempting a rebound from support, Bulls will face similar Doji tests as seen in the DJIA:

• Above the 1H Doji, the range will be confirmed to hold
• Below the morning gap lows (24,150), expect further downside in the Index
  • 24,000 will first come as a test.

Nasdaq technical levels of interest:

Resistance Levels

• 1H Doji 24,390 (bullish above)
• 24,450 to 25,550 Range Pivot (short-term resistance)
• Mini-intraday Resistance 24,750
• Key Resistance 25,000 to 25,200 (Range highs – Long-term Bullish above)

Support Levels

• February Support 24,150 to 24,200 (Range lows – Bearish below)
• October - November Support 23,800 to 24,000
• Early 2025 ATH at 22,000 to 22,229 Support

The S&P 500 is now also facing a critical test ahead, having formed a double bottom right below 6,580.

• Rebounding here would be necessary to relaunch better hopes in US Stock Markets
• Breaking the morning lows and double bottom however would open the door for a much larger correction!
  • Check out the past hour 1H doji highs (6,620) for confirmation – If break, next intraday resistance would be found at 6,740.

S&P 500 technical levels of interest:

Resistance Levels

• Momentum Pivot 6,640
• 6,680 to 6,700 Mini-resistance
• 6,740 Key intraday resistance
• Pivotal Resistance 6,770 to 6,800

Support Levels

• 6,570 to 6,600 Monday Key Double Bottom support
• Overnight lows 6,567
• 6,490 to 6,512 October lows Immediate Support
• 6,400 Major psychological support

Safe Trades and Keep track of WTI prices!

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