The Dow Jones Industrial Average, S&P 500 and the NASDAQ Composite index witnessed a strong sell-off on Friday. NASDAQ Composite tumbled over 4 per cent, while the S&P 500 and Dow Jones fell 2.5 per cent and 1.3 per cent respectively on Friday.On the forex front, the dollar index and the Treasury yields got a boost on Friday from the jobs data release. The US added 172,000 jobs to its nonfarm payroll in May. Market was expecting for an addition of 80,000 jobs. The unemployment rate remained stable at 4.3 per cent.Strong job numbers are strengthening the case for a rate hike from the US Federal Reserve this year. That in turn has pushed the greenback and the yields higher on Friday.Dow Jones (50,872.08)The rise to 51,500 happened as expected, but the index has declined sharply from the high of 51,665.Key supports are at 50,600 and 50,250. A bounce from either of these supports can take the Dow Jones higher to 51,500 again. It will also keep the upside open to see 52,500. However, as mentioned last week, 52,500 is a crucial resistance. It can halt the rally and trigger a reversal towards 51,000 and even lower.In case the index breaks below 50,250 from here itself, then there is a danger of seeing a fall to 49,500-49,200. In that case, the chances of the rise to 52,500 will get negated.S&P 500 (7,383.73)Contrary to our expectation, the index has declined breaking below the support at 7,500. Crucial support is in the 7,330-7,300 region. The index has to sustain above this support and bounce back in order to go up to 7,450-7,500 again.Failure to do so and a break below 7,300 will be bearish to see 7,150-7,100 on the downside. Such a fall will indicate that a top is in place.Ideally, the S&P 500 index has to rise past 7,500 again to bring back the earlier bullishness. Only then the rise to 7,700-7,800 mentioned last week is possible.NASDAQ Composite (25,709.43)As cautioned last week, a strong reversal has happened. We had expected the reversal from around 27,500. The NASDAQ Composite index has turned down after making a high of 27,190 itself.Immediate support is at 25,650. A break below it can drag the index down to 24,500-24,000 in the coming weeks.In case the index manages to bounce back from around 25,650, a relief rally to 26,500 is a possibility. But thereafter the index can resume the fall.Overall, the bias is bearish to see a fall to 24,500-24,000. This can happen either from here itself or after a short-lived corrective bounce.Dollar indexThe dollar index (100.10) has risen sharply breaking above the resistance at 99.55. The outlook is bullish. The region between 99.55 and 99.45 will now act as a good support. A fall below 99.45 is needed to bring the index under pressure. But that looks less likely.Dollar index can rise to 100.70-101 l in the short term. The region between 101 and 101.30 will be a very crucial resistance zone from a long-term perspective. A sustained rise above 101.30 can see the dollar index rallying to 105 this year.Treasury yieldThe 10Yr Treasury Yield (4.53 per cent) has risen back well from the low of 4.42 per cent last week. Important resistance to watch now is at 4.6 per cent. A decisive break above this resistance can take the 10Yr Yield higher to 4.8 per cent in the coming weeks. It will also keep the doors open to see 5 per cent on the upside eventually over the long term.Failure to rise above 4.6 per cent and a subsequent fall below 4.5 per cent will bring back the chances of seeing 4.4-4.35 per cent on the downside.Published on June 6, 2026