Markets tread carefully as US indices consolidate after Powell's speech

[Redator]

Friday's ecstatic trading brought all risk-assets including Equity indices, cryptocurrencies and FX currencies higher.

But Participants, having time to digest the switch of tone from Powell's Jackson Hole speech over the week-end, have backed up on their euphoric pricing.

Nonetheless, US Indices have made quite a move, particularly the Dow Jones making new all-time highs.

The Nasdaq is trying to re-enter its longer-run upward channel, the S&P 500 retests its record highs and the US 30 made a break-retest pattern which could potentially lead to a further technical rebound.

For other news, US President Trump fired FED's Cook yesterday amid mortgage fraud allegations, hurting the US Dollar a tid-bit but markets seem to discard the headline a bit. It will be key to spot who he appoints next (Lisa Cook had been appointed by President Biden in 2022).

Let's have a look at all US Indices (Dow Jones, S&P 500 and Nasdaq) intraday levels to spot where they could be heading in upcoming trading as current picture shows mixed signs.

Read More: What’s driving the US Dollar after Powell’s Friday remarks? Dollar Index (DXY) outlook

Dow Jones 4H Chart

Dow Jones 4H Chart, August 26, 2025 – Source: TradingView

Traders seem to how no sign of life in the current picture, but overall the correction from yesterday has formed a short-term bottom at a break-retest of the previous all-time highs – Bulls entering here would add higher probabilities of bullish continuation.

On the other hand, bears will want to recross the 45,000 Pivot Zone to enter the past month range (which goes all the way to the 44,000 Main Support).

Levels of interest for Dow Jones Trading:

Resistance Levels

• Current All-time high 45,757
• ATH Resistance Zone 45,700 (+/- 150 pts)
• 1.618 Fibonacci-Extension for potential ATH resistance 46,260

Support Levels

• Previous ATH resistance zone, now pivot 45,000 (+/- 150 points)
• 45,283 previous ATH (getting tested right now)
• 44,000 Main Support Zone

S&P 500 4H Chart

S&P 500 4H Chart, August 25, 2025 – Source: TradingView

Buyers are trying to enter at the 4H 50 period MA but the attempt is shy.

Indeed, a technical double top at the all-time high (created last Friday from the Powell bullish impulse) may provide a more bearish intermediate outlook for the Index.

However, reaching the highs again and breaking them would point to a continuation within the upward Channel.

Levels of interest for S&P 500 Trading:

Resistance Levels

• session highs 6,390 (2H MA 200 in confluence)
• All-time high resistance zone 6,470 to 6,490
• Current All-time Highs 6,489
• 6,539 Potential ATH resistance (from Fibonacci extension)

Support Levels

• Immediate Pivot 6,430
• 6,400 Support and Channel lows
• pre-Powell mini support 6,350
• 6,210 to 6,235 Main Support (NFP Lows)

Nasdaq 4H Chart

Nasdaq 4H Chart, August 25, 2025 – Source: TradingView

Bulls have successfully brought the index back into the upward channel, with the Nasdaq being the only index higher at the open but the margin is small and Bulls will have to counter the 4H MA 50 acting as immediate resistance.

Holding above the lower bound of the upward channel would help the bullish case.

Staying below the 50-MA on the other hand may be bringing more bearish flows that should accelerate on a break-down.

The current picture is also mixed for Tech as seen with shy rebounds in Cryptocurrencies for example, so watch sentiment ahead.

Levels to watch for Nasdaq trading:

Resistance Levels

• Current All-time Highs 23,986
• 23,500 Support turned resistance
• 23,492 4H-MA 50 acting as immediate resistance

Support Levels

• 23,000 Key momentum Pivot
• 22,700 support at NFP lows
• Early 2025 ATH at 22,229

Safe Trades!

Opinions are the authors'; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. The provided publication is for informational and educational purposes only.
If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please refer to the MarketPulse Terms of Use.
Visit https://www.marketpulse.com/ to find out more about the beat of the global markets.
© 2025 OANDA Business Information & Services Inc.