US GDP beats and Monday gaps fill – Dow Jones and US Stock Index Outlook

Ben Graham · 1 hora atrás

Stock Indexes push higher yet again amid the latest Trump TACO
Now extending towards the Monday Futures gap, Stocks are back to neutral-bull territory – Key levels still have to be broken
Exploring Technical Levels for the Dow Jones, Nasdaq and S&P 500

This morning brought a fresh wave of optimism to Wall Street.

First, traders received an update from the Trump Administration regarding Greenland.

The recent rhetoric had posed significant sentiment hurdles, triggering repricings after a positive start to 2026. The situation shifted yesterday afternoon when Trump posted that a framework for Greenland's strategic use by the US had been reached.

While details remain unclear, the tone is calmer, easing fears of a NATO collapse or armed invasion. However, Greenland will likely continue to assert its sovereignty, meaning tensions could flare if the deal does not align with local views.

Combined with the latest data, US sentiment is back at highs. Q3 GDP beat expectations (4.4% vs 4.3% expected), arriving alongside slight misses in PCE data. This combination supports a soft-landing scenario, the most favorable outcome for stocks.

The ongoing earnings season is also leaving a decent impression. The key Magnificent 7 reports still face the test of extreme expectations, but the path should become clearer ahead of the January 28 FOMC meeting.

Microsoft, Meta, Tesla, and ASML report after the close on FOMC day, while Apple and Visa follow on Thursday.

heatmap morning 2201 — Current picture for the Stock Market (11:50 A.M. ET) – Source: TradingView – January 22, 2026

The picture is once again very green all around the Market, with Meta leading to the upside (+4.22%) and Mag 7s sustaining well after their more volatile 2025 year-end.

This expresses some repositioning ahead of their earnings next week.

Energy Minerals and Producer Manufacturing are among the lagging sectors.

Dive into our daily session charts and trading levels for the major US Indexes: Dow Jones, Nasdaq, and S&P 500 – Watch for pre-weekend volatility as the situation is fully clear yet and Iran remains a factor.

Dow Jones 4H Chart

Now easily brushing back above the 49,000 level, the DJIA is testing its all-time highs.

The Morning 4H Candle just closed and expresses some form of momentum slowdown at previous highs, confirming more rangebound price action that could be expected all the way to next week's FOMC.

Breaking and closing above the 49,715 all-time highs could see follow through as long as a break occurs on strong volume – Momentum has got more bullish but the TACO spike could slow down
A pullback here could easily test the 49,150 level which crosses with the 4H 50-period MA
Any session close below the 49,000 key level brings back seller strength which could move towards the 4H 200-MA (48,620)

Dow Jones technical levels for trading:

Resistance Levels

Session Highs 49,628
49,650 to 49,670 Current ATH Resistance
All-time Highs 49,710
50,000 Potential Psychological Resistance

Support Levels

49,150 4H 50-period MA
Christmas ATH High Timeframe Momentum Pivot – 49,000
Intraday support 48,600 to 48,700
November ATH 48,300 to 48,500 Mini-Support
Psychological Support at 48,000
45,000 psychological level (Main Support on higher timeframe)

Nasdaq 4H Chart

nasdaq 2201 4h — Nasdaq (CFD) 4H Chart – January 22, 2026 – Source: TradingView

Nasdaq is once again stuck in its higher timeframe Range (24,500 to 25,800) which has been containing its progress since its October drop.

The two-session rebound is still very impressive, with the index up 2.50% during that span.

Looking further to higher timeframes, consolidations at relative all-time highs are a positive sign as it allows Overbought conditions from the previous year to largely ease – Conditions needed for clean breakouts.

Still, bulls will have to manage a daily close above the 25,700 Resistance in order to generate further momentum and potentially push for a new all-time high record.

Next week's earnings will have a huge influence on Stock Movement. Keep a close attention to the Fed's communications next week.

Nasdaq technical levels of interest:

Resistance Levels

Session Highs 25,625
Intermediate Resistance 25,700 to 25,850
All-time high resistance zone 26,100 to 26,300
Current ATH 26,182

Support Levels

Momentum Pivot 25,200 to 25,500 +/- 75 pts
session lows 25,425
Minor Support 25,000 to 25,250
24,500 Main support
Early 2025 ATH at 22,000 to 22,229 Support

S&P 500 4H Chart

SP 500 4h 2201 — S&P 500 (CFD) 4H Chart – January 22, 2026 – Source: TradingView

The S&P 500 is about 100 points higher compared to our past day analysis, but the index is expressing some technical doubts as it faces a retest of its Monday Futures Gap (6,930).

The current dragonfly doji candle indicates decent bull resilience but general balanced action which could easily lead to a retest of the 6,880 to 6,900 Pivot area.

For bull/bear indications, traders can spot whether the action remains above the 4H 50-period MA (6,915) – closing below on high volume can prompt a further correction to 6,830-6,850, past day support levels.

S&P 500 technical levels of interest:

Resistance Levels

Session highs 6,938
Previous ATH Resistance 6,945 to 6,975
Current ATH Resistance at 7,000

Support Levels

Pivot Zone 6,880 to 6,900
Mini-Support 6,830 to 6,850 (Past day support)
6,800 Psychological Support
6,789 session lows
Support 6,720 to 6,750 (Mid-December lows at 6,729)
6,400 Major psychological support

Don't forget to stay close to the headlines as the World Economic Forum is still ongoing!

Safe Trades!

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