Dow Jones rises, but major support is under threat

[Redator]

After three sessions of correction in US equities, the Dow Jones is attempting a comeback.

The move comes in the shadow of what had been a heavily risk-on pre-FOMC environment, where expectations for rate cuts kept fueling a wave of optimism across markets.

The Nasdaq even strung together 12 consecutive sessions higher, while the Dow itself had been pressing toward new all-time highs.

Still, the mood has shifted: Equity Markets could be getting less optimistic regarding FOMC policy.

Even positive GDP data has been largely disregarded, with investors instead focusing on the decreased pricing of cuts further out into 2026 and a labor market that—judging by yesterday’s Jobless Claims beat—remains far from fragile.

With Jerome Powell expressing that the labor market would be more at the central picture in his Rhode Island speech on Tuesday, positive data would hence push out rate cuts further.

Today's Core PCE release did send out further proof that inflation hikes would be more a temporary boost rather than a long-run change, reassuring the FED.

With this backdrop, the question now is whether the Dow’s latest bounce can hold or if major support levels are next in line to be tested.

Indeed, prices just reacted to a test of the upward trendline formed from the June lows but still aren't showing the utmost bullish price action.

Explore this US 30 multi-timeframe analysis to spot what are the key technicals in play for upcoming trading.

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An overlook on Individual Stocks

US Equity heatmap – September 26, 2025 – Source: TradingView

The current session is mixed but gives further momentum to Consumer Defensive and Durables sectors.

Dow Jones multi-timeframe analysis

Daily Chart

Dow Jones Daily Chart , September 26, 2025 – Source: TradingView

A 2% correction to the 45,840 lows has been met with some encouraging dip-buying, particularly where the price action currently stands.

The 45,800 level is a key to monitor for ongoing price action, particularly as this level holds the Rising Wedge pattern into play.

A typically bearish signal due to contracting bullish momentum (with the higher trendline converging), a break lower could be attracting some reversal.

4H Chart and levels

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

The rejection wick from Tuesday trading, notably marking new all-time highs, got met with some follow up profit-taking, taking the action back into the Rising Wedge pattern.

Looking at the current course of action, buying flows are still pretty strong as price action managed to breach above the MA 50 again.

Nonetheless, bulls will have to at least surpass 46,500 due to its psychological and technical tenure to relaunch a more positive price action.

For bears, watch a break below the 46,000 Pivot (+/- 150 points) which would also coincide with a break of the upward trendline.

Levels for Dow Jones trading:

Resistance Levels

• Current All-time high: 46,794
• 1.618 from April current resistance 46,400 to 46,830
• High of channel and 1.618% Fib of July move 47,000 to 47,160 (potential resistance)

Support Levels

• 46,000 Key Momentum Pivot
• 45,283 previous significant ATH
• Key Support/longer-run pivot 45,000
• Support 44,200 to 44,500
• Main Support (NFP Lows) 43,000 to 43,750

Safe Trades!

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