It was a volatile week for the US stock markets. The Dow Jones Industrial Average, S&P 500 and NASDAQ Composite index continues to get beaten down. The Dow Jones, down 0.94 per cent, fell for the second consecutive week. The S&P 500 and NASDAQ Composite indices closed in negative for the fourth consecutive week. They were down 2.68 per cent and 3.37 per cent, respectively.
The overall sentiment is negative, and more fall is on the cards. However, key supports are also coming up on the charts. So, the US benchmark indices can see a recovery after witnessing some more fall from current levels.
Dow Jones (51,291.14)
The sharp fall after the initial surge to 53,716 keeps the broader bias negative. Resistance is in the 51,500-51,600 region. The Dow Jones can fall to 50,700 or 50,400 from here. Failure to bounce back thereafter can trigger an extended fall to 49,900-49,800.
This broad 50,400-49,800 is a strong support zone which can halt the current fall. We can expect the Dow Jones to bounce back anywhere from the 50,400-49,800 region. That in turn can take the index upto 51,500 and even higher.
S&P 500 (7,376.86)
The break above the 7,600-7,620 resistance zone did not sustain. The S&P 500 touched a high of 7,715 and fell sharply giving back all the gains. The index can fall to 7,300-7,280 this week.
But thereafter, we see high chances for a bounce back move to 7,450-7,500. The price action in the 7,300-7,280 region will need a very close watch this week.
In case the index fails to bounce back from the 7,300-7,280 support zone, then an extended fall to 7,200 can be seen.
NASDAQ Composite (24,579.42)
The extended fall to 24,000 is happening as mentioned last week. The NASDAQ Composite index made a low of 24,262 and then has recovered slightly from there.
Key supports are at 24,350 and then in the 24,100-24,000 region which can be tested this week. We expect the index to sustain above this support. A bounce from the 24,100-24,000 support zone can take the NASDAQ Composite index up to 25,200 or even 25,500.
The danger is only if the index breaks below 24,000. In that case, a fall to 23,000 can happen.
Dollar Outlook
The support in the 101-30-101.20 region limited the downside in line with our expectation. The dollar index (102.28) touched a low of 101.10 and then has risen back sharply. That keeps intact our overall bullish view. Immediate support is at 102. Below that 101.50 will be the next key support.
Resistance is in the 102.50-102.55 region. We see high chances for the index to break this hurdle. Such a break can take the dollar index higher to 103-103.50 in the short term.
As mentioned last week, the dollar index has to decline below 100.90 to become bearish. Only then a fall to 100 will come into the picture. But that looks less likely.
Treasury Yield
The US 10Yr Treasury Yield (4.83 per cent) came down as expected last week to test the 4.85-4.8 per cent support zone. It is also holding well above 4.8 per cent in line with our expectation.
As long as the yield stays above 4.8 per cent, there are good chances to see a rise back to 5-5.05 per cent in a week or two. An eventual break above 5.05 per cent can then take the Yield further higher to 5.2 per cent. That in turn will also keep the doors open to see 5.6 per cent on the upside in the long term.
This bullish view will come under threat if the yield breaks below 4.8 per cent. If that happens, then a fall to 4.6 per cent can be seen.
Published on November 7, 2026
You are an experienced Indian business news editor writing an original, value-added article for an Indian audience. Using the source material above, produce a NEW article that is more useful than the original — not a reworded copy.
MANDATORY STRUCTURE — include ALL of these even if the source is short (expand thin sources with relevant factual context to meet the minimum length):
- A 2-3 sentence summary paragraph up front (the key takeaway).
- At least THREE body sections, each introduced by a descriptive
subheading grouping related facts.
- A
What This Means
- A
Frequently Asked Questions
Rules:
- Preserve all key facts, figures, quotes, names and dates accurately. Do not invent data.
- Add relevant Indian market/sector context the source lacks.
- Minimum 500 words. Short paragraphs.
- Output ONLY the finished HTML article body. No preamble, no “here is the article”, no meta-comments.
