Stock markets and technology sector breathe again – Dow Jones for new Highs All-Time!

Ben Graham · February 6

Stock Benchmarks rebound after a terrible start to February
Widespread rebound across all sectors, with Tech seeing a particular bounce (despite Amazon, Google and Meta struggling)
Exploring Technical Levels for the Dow Jones, Nasdaq and S&P 500

The green freight is back, pulling global equities sharply higher.

A more fragile risk appetite following last week’s new Fed Chair announcement cascaded into a brutal, cross-asset selloff yesterday leaving Participants scratching their heads.

First, lingering geopolitical anxiety (US-Iran) weighed heavily on sentiment.

On top of that, recent mid-tier US labor data challenged the resilience narrative that showed throughout most releases since December.

JOLTS, jobless claims, the Challenger layoffs report, and Tuesday’s ADP misses all pointed toward a labor market that is weakening rather than holding up, lowering expectations ahead of Wednesday’s NFP release.

Stock markets and technology sector breathe again – Dow Jones for new Highs All-Time! - ExpertFX School — Challenger Job Cuts – January 2026 report – Source: Challenger, Grey and Christmas

Overnight, however, anxiety eased.

Japan’s Nikkei 225 (+4.20%) led a powerful rebound ahead of Sunday’s snap elections, while dovish repricing for both the Fed and the Bank of England — alongside ongoing US-Iran discussions that have so far avoided escalation — helped fuel today’s risk rally.

Even cryptocurrencies, which have been under heavy pressure, rebounded sharply after reaching key support zones. Bitcoin quickly flashed from $60,000 to $69,000!

Whether the bounce holds remains the big question. One thing is clear: digital assets remain fragile and firmly back at the top of the volatility leaderboard.

Tech and software names are also catching a breather after months of drought, as investors had punished heavy AI-related CapEx amid fears of creative destruction.

Services once sold at a premium are increasingly achievable with a few Claude or Gemini tools. While that reality still poses a threat to high-P/E companies, the sector is enjoying temporary relief.

Nvidia is leading mega-cap performance alongside AMD — a dynamic not seen since October 2025 — while other Mag-7 names such as Google, Amazon, and Meta continue to struggle despite record earnings.

Markets are growing less complacent about massive AI infrastructure spending as doubts around near-term profitability creep in.

Traders are bracing for a volatile week ahead, but with noticeably less anxiety. Dovish expectations for NFP could further cement the odds of a March Fed cut, currently priced at just 15%.

After diving into Weekly charts for Nasdaq and the Dow (I invite you to check them out), we move into today’s session charts and key trading levels for the major US indices: the Dow Jones, Nasdaq, and S&P 500 ahead of the weekend.

Dow Jones 4H Chart and Trading Levels

The Dow Jones is once again outperforming its peers with traditional sectors seeing even crazier relative strength with the ongoing sentiment rebound.

Now breezing through its preceding all-time highs, the Index will face a key test at the 50,000 milestone which could be reached for the first time in today's session!

An enormous feat when seeing that the DJIA was just at 36,618 during the Liberation Day drop.

Despite all the warnings and pessimistic sentiment, Equities consolidating at their highs really was a sign of strength (as indicated in our higher timeframe outlook).

Nevertheless, recent volatility remains very tricky to trade, hence this run to new highs will be essential for days to come:

Remaining above all-time highs will be a show of strength, particularly if the Index holds there after the Non-Farm payrolls.
The 50,000 level will act as key psychological level, breaching it to the upside is a sign of further strength incoming
Watch for any fakeouts on Monday which could have the opposite effect

Keep a close eye on immediate action as prices reach the 49,900 to 50,000 resistance.

Dow Jones technical levels for trading:

Resistance Levels

49,900 to 50,000 Psychological Resistance
49,927 session highs and ATH (CFD) – Index at 49,909
Potential mini-Resistance 50,150
Potential mini-Resistance 2 50,450

Support Levels

January ATH Resistance now Pivot From 49,500 to 49,700 (Bull above, bear below)
Intraday Support 49,200 to 49,350
Pivotal Support – 49,000 to 49,100 (acted as key support, watch if it breaks)
Intraday Support 48,600 to 48,700
Key Support around 47,500
45,000 psychological level (Main Support on higher timeframe)

Nasdaq 4H Chart and Trading Levels

Nasdaq is leading quite a surprising rebound (+3.37% from lows) in today's action after struggling from rough outflows – It had initially been lagging the rise in the Dow Jones but is now catching up towards the mid-session.

Still, the tech-heavy index will be under scrutiny over times to come, particularly as software-tech sector outflows have amassed quite some momentum.

Evolving within a descending channel, bulls will want to push for a break above the 25,250 Pivot Zone highs (which will break the channel).
Rejecting from there would be sending more bearish signs for continuation lower.

Nasdaq technical levels of interest:

Resistance Levels

Minor Support now Pivot 25,000 to 25,250
25,400 to 25,500 Key intraday resistance
Pivotal Resistance 25,700 to 25,850
26,246 FOMC highs
All-time high resistance zone 26,100 to 26,300

Support Levels

February 5 lows 24,165
24,500 to 25,600 Key Support
October - November Support 23,800 to 24,000
Early 2025 ATH at 22,000 to 22,229 Support

S&P 500 4H Chart and Trading Levels

The S&P 500 is also catching quite a breather after its fast paced descent to test the lows of its 6,700 to 7,000 broad range (holding there since December 2025).

Despite the huge move higher, traders will want to see a break above the 7,020 All-Time Highs to confirm a further extension and a pursued rally.

Keep an eye on the 4H 50 and 200 Moving Averages acting as imminent intraday resistance from 6,920 to 6,930.

S&P 500 technical levels of interest:

Resistance Levels

4H 50 and 200-period Moving Averages (6,918 and 6,930)
Previous ATH Resistance 6,945 to 6,975
Current ATH 7,020
All-time High Resistance 7,000 to 7,020 (range highs)

Support Levels

Key Pivot Zone 6,880 to 6,900
Mini-Support 6,830 to 6,850
6,800 Psychological Support
Overnight lows 6,735 (range lows)
6,400 Major psychological support

Safe Trades and keep a close eye on the US-Iran discussions!

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