The Dow Jones Industrial Average, S&P 500 and NASDAQ Composite index closed in the red last week. The Dow Jones, down 0.85 per cent, fell for the second consecutive week. The S&P 500 was down 1.43 per cent. The NASDAQ Composite index was beaten down the most. The index fell 2 per cent for the week.The short-term picture looks slightly weak. There is some room for the US benchmark indices to fall further from here. However, key supports are there which can halt the current fall. The price action around the supports will need a close watch this week. We expect the indices to bounce back from their support.Dow Jones (53,282,32)Support is at 52,400 which can be tested this week. A bounce from this support and a subsequent rise above 53,400 will be bullish. Such a rise can take the Dow Jones higher to 54,700 and 55,000 again. That will also keep the upside open to see 56,000 eventually.If the index breaks below 52,400, an extended fall to 52,000 can happen. The above-mentioned rise to 55,000-56,000 will get negated only if the Dow Jones breaks below 52,000. In that case, the outlook will turn negative, and the index can fall to 51,000 and lower.S&P 500 (7,674.37)The fall last week looks just like a correction. Immediate supports are at 7,630 and 7,600 which can be tested this week. Below that 7,550 is a very strong support. The short-term picture will turn negative only if the index declines below 7,550.We expect the S&P 500 index to sustain above 7,600 itself and reverse higher. That will keep intact our broader bullish view. The index can then go back up to 7,800. A decisive break above 7,800 can then clear the way for the rise to 8,000. As mentioned last week, the price action around 8,000 will be very crucial.NASDAQ Composite (26,180.45)Immediate support is at 26,000. A bounce from here and a subsequent rise above 26,500 will strengthen the case for a rise to 27,000. If the index manages to breach 27,000, then an extended rise to 28,000 is a possibility.From a big picture, a rise beyond 28,000 might be difficult. As such we expect the upside to be capped at 28,000. So, as the index goes up towards 27,000-28,000, it is important to become more cautious than overly bullish.In case the index declines below 26,000 from here, then 25,500 and lower levels can be seen.Dollar OutlookThe dollar index (98.85) fell sharply last week. Indeed, it has declined below the key support level of 99 contrary to our expectation. The region between 99 and 99.20 will be a very good resistance now.The near-term picture looks weak for a fall to 98.20-98, a crucial support zone. A bounce from this support region and then a subsequent rise above 99 is needed to get some breather. Only then the bias will turn positive for a rise to 101 again.In case the index breaks below 98, a fall to 97.60 is possible. A further break below 97.60 will increase the danger of seeing 96 on the downside.The price action this week is going to be very crucial.Treasury YieldThe US 10Yr Treasury Yield (4.74 per cent) remained within the 4.6-4.75 per cent range. Our bias is bullish to see a breakout above 4.75 per cent and a rise to 4.8 per cent first. An eventual break above 4.8 per cent will then clear the way for a rise to 5 per cent.In case the yield declines below 4.6 per cent, it can fall to 4.5-4.45 per cent and not beyond that.Published on August 22, 2026