The Nasdaq has declined 20%, while the S&P 500 and Dow Jones have experienced significant drops amid geopolitical tensions and tariffs. Previously, predictions suggested that major US indices were approaching critical inflection points, with the Nasdaq peaking around 22010, the S&P 500 at 6020, and the Dow Jones at approximately 45050.
The Nasdaq 100 is now in bear market territory, trading near 17285. If it loses support at 17444, further declines to 16836 could occur, with resistance at 18205 and 18440.
The Sp 500 Performance
The S&P 500 has decreased over 16% from its highs, currently testing support at 5151. A drop below this level may lead to further declines toward 5030 and 4955, with significant resistance at 5225 and 5300.
The Dow Jones has fallen by about 1450 points, marking a decline of over 14%, influenced by China’s response to tariffs. Trading near 38982, if it fails to hold this level, further support levels exist at 38508 and 37743, with a target of 36504 in a deeper correction.
Fundamental factors include tariffs disrupting trade and a deteriorating economic outlook with rising inflation and interest rates. Corporate earnings concerns also contribute to market volatility.
Historical patterns suggest continued selling pressure until markets find a stable bottom. Participants should remain cautious and attentive to key indicators as volatility is expected to persist. Monitoring portfolios and managing risk will be essential during this market upheaval.
Nasdaq Sentiment Shift
We’re seeing sharp corrections across all three major US indices, pressured by escalating trade tensions and global risk concerns. The Nasdaq’s 20% drop is more than just a figure—it confirms a broader shift in sentiment. What looked like momentum through early 2024 has broken down. That upward climb to 22010 on the Nasdaq marked the high-water point, and we have now moved into correction territory with the index pushing below key support zones. Specifically, 17444 appears increasingly fragile; if broken, the next landing zones of 16836 could become magnets.
Given historical behaviours during similar pullbacks, this support-resistance profile tends to define short-term risk appetite. Resistance overhead, clustered near 18205 and 18440, adds to the weight, making bounces hard to sustain unless a shift in macro signals occurs. These levels are no longer theoretical—they are shaping market behaviour hour by hour.
On the S&P 500, the 16% drawdown shows how sentiment is stretched. Levels that earlier acted as launchpads have now become battlegrounds, with 5151 under pressure. Loss of this zone will likely accelerate downside towards 5030 and then 4955. But resistance has moved lower too, now pressing down between 5225 and 5300. It’s as if the market is boxed in, needing a trigger—either data or policy—to find direction.
Looking at the Dow, the tone is similar. The recent 1450-point decline isn’t just headline-driven—it’s part of a broader weakness triggered by China’s stance on tariffs. The threshold near 38982 is failing to attract committed buyers. Should that breach with force, the lower supports at 38508 and 37743 become the next checkpoints, with 36504 a realistic downside projection if bearish momentum escalates.
Economic currents are worsening. It’s not simply the tariffs. Rising inflation coupled with tighter monetary conditions is challenging corporate performance. Earnings estimates are already being revised—lower. That adds weight to selling pressure, especially in sectors sensitive to rate movements.
We’ve seen this before. Price action typically doesn’t stabilise quickly after such drops. Volatility remains elevated, and attempts to rebound can be sharp but short-lived. Watching how certain sectors perform—as well as central bank commentary—will give important signals. Risk models need to remain dynamic. Fixed positions or assumptions may quickly become liabilities.
Now is not the time for passive monitoring. Attention to short-term price patterns, volume behaviour near support levels, and intermarket correlations offers clearer guidance. Those levels outlined above are not abstract—price is actively testing them, and how it behaves at those lines means the difference between recovery and deeper losses. For now, the trend remains hesitant, and adaptability remains key.
