The Dow Jones Industrial Average, S&P 500 and the NASDAQ Composite index witnessed some recovery last week. The Dow Jones snapped its two-week fall and closed 0.53 per cent higher last week. The S&P 500 and the NASDAQ Composite index were up 0.49 per cent and 0.85 per cent respectively.The bounce last week has given some relief. But it is now important to see whether the benchmark indices can get a strong follow-through rise from here or not. We will have to wait and see.Dow Jones (53,565.35)Near-term support at 53,300. As long as the index stays above this support, the bias will remain positive. A rise to 54,000 is possible initially. A further break above 54,000 can then take the Dow Jones higher to 54,750-55,000, and higher. It will also keep the upside open to see 56,000 in the medium term.The short-term picture will turn negative only if the index breaks below 53,300. Such a break can drag the Dow Jones down to 52,800-52,700We expect the Dow Jones to sustain above 53,300 and rise towards 55,000-56,000 in the coming weeks. This will be our most preferred move.S&P 500 (7,711.76)The chances of the fall to 7,600 mentioned last week have reduced. However, it has not been completely negated yet.Immediate support is in the 7,700-7,690 region. A break below 7,690 can drag the S&P 500 index down to 7,650-7,630 again. It will also keep the chances alive of seeing 7,600 on the downside.As mentioned last week, 7,600 is a strong support from where the index can bounce back again. As long as the index stays above 7,600, the upside will remain open to see 7,800 and higher levels.In case the index manages to sustain above 7,690 this week, then the rise to 7,800 can happens straight away. An eventual break above 7,800 will then clear the way for a rise to 8,000, a crucial long-term resistance level.NASDAQ Composite (26,402.42)The break below 26,000 seen initially last week did not sustain. The NASDAQ Composite index made a low of 25,910.82 and has risen back well from there.Immediate support is at 26,350. A break below it can drag the index down to 26,000-25,950 again. That in turn will keep it vulnerable to see 25,500 on the downside.On the other hand, if the NASDAQ Composite index manages to sustain above 26,350, a rise to 27,200 can be seen this week. A break above 27,200 can trigger an extended rise to 28,000,We reiterate that 28,000 is a very strong resistance and a break above it might not be easy. We expect the NASDAQ Composite index to reverse lower from around 28,000 and fall back to 27,000-26,000 and even lower. So, we repeat that more caution is needed as the index approaches 28,000.Dollar outlookThe dollar index (99.68) has risen back well above 99. Our view of seeing a fall to 98 has got negated now.The US Federal Reserve Chairman Kevin Warsh hinted about a possible rate hike in his speech at the Jackson Hole symposium. This has pushed the dollar index higher and close well above 99 on Friday.The region between 99.20 and 99 will now act as a very good support. As long as this support holds, there are good chances for the dollar index to breach 100. Such a break can take the dollar index higher to 100.50 and 101 again.The index has to decline below 99 to come under pressure for a fall to 98.50. But that looks less likely.Treasury yieldThe US 10Yr (4.73 per cent) continues to oscillate up and down within its 4.6-4.75 per cent range. Our view remains the same.We expect the US 10Yr Yield to make a bullish breakout above 4.75 per cent and rise to 4.8 per cent first. A further break above 4.8 per cent will then clear the way for a fresh rise to 5 per cent in the medium term.A break below 4.6 per cent is needed to drag the yield down to 4.5-4.45 per cent. But that looks less likely as the hopes for a rate hike has gone up now.Published on August 29, 2026