The Powell/TACO combo lifts Wall Street from early losses

[Redator]

Today marked the first trading day of the week for many North American traders after Columbus Day for the US and the Canadian Thanksgiving — and the session opened with what felt like a long-weekend hangover.

Overnight markets had reacted sharply to China’s condemnations regarding the escalating US-China trade tensions, notably hurting Oil markets even further.

Despite Trump’s reassuring comments on Sunday, which helped risk assets rebound over the weekend and led to a bullish Monday session, sentiment reversed during the Asia session leading to a scary opening Bell.

Major indices gapped down, with the Nasdaq dropping 1.2% and cryptocurrencies also taking another hit after last week’s selloff.

Sentiment quickly shifted mid-morning after the rough open.

US Trade Representative Jamieson Greer downplayed some of the recent rhetoric between the two nations, triggering a rebound just 20 minutes after the open that carried momentum throughout the session.

By midday, all four major US indices had turned positive, erasing their early losses.

15M Chart Outlook for US Equities – October 14, 2025 – Source: TradingView

Despite the impressive rebound right after the open taking all indices to their weekly highs, there is are ongoing selloff waves in the Dow Jones and the S&P 500 to keep some eyes on. Nasdaq is not really reacting much for now and I am not spotting any headlines.

The real bullish catalysts came around mid-day from Fed Chair Jerome Powell, whose dovish remarks at the National Association for Business Economics meeting brought further bullish momentum.

Powell’s comments raised questions about whether the Fed had early insights into the NFP data, as he emphasized that further labor market softening could justify additional easing.

His tone cemented expectations for another rate cut by month-end, reinforcing the ongoing theme of things not being so bad after all despite the US-China trade scare.

You can access his latest speech right here.

Still, the price action is looking more rangebound with the recent swings rather than back to fully bullish – Let's take a closer look to the Dow Jones, Nasdaq and S&P 500.

US Equity heatmap – October 14, 2025 – Source: TradingView

Read More:

• WTI Oil tumbles as US-China trade tensions flare up again
• UK labor report gives pound a reality check: What's next for GBP
• US-China trade war scare: What happened Friday and where things stand now

US Index analysis and levels: Dow Jones, Nasdaq and S&P 500

Dow Jones 4H Chart

Dow Jones 4H Chart, October 14, 2025 – Source: TradingView

The Dow Jones led an impressive rebound today, lifted by decent earnings and a easier-path ahead when turning to Powell's latest comments.

A few things to look going forward:

• A downward topline has put a strong stop to the ongoing bullish action
• Bulls will have to break above the Monday highs to relaunch a fully bullish price action
• Sellers will also have to break below the daily lows to relaunch take control
• In the meantime, the technical outlook being mixed, a consolidation period would have high probability of taking place – At least until the market knows more on the US-China situation.

Dow Jones technical levels of interest

Resistance Levels

• Current All-time high 47,105
• Daily highs to break with topline 46,560
• ATH Resistance Zone 47,000 to 47,160 (+/- 150 pts)
• post-FOMC highs resistance zone around 46,400 (immediately testing)

Support Levels

• August ATH Immediate Pivot 45,650 to 45,750
• Daily session lows at 45,490
• Friday lows at 45,189
• 45,000 psychological level
• 44,400 to 44,500 Main Support

Nasdaq 4H Chart

Nasdaq 4H Chart, October 14, 2025 – Source: TradingView

The Tech-Heavy index hasn't rebounded as strongly as its peers today on a relative change and is finding itself in a mixed technical environment.

It is the second time that sellers appear at the key Momentum pivot around 24,800 showing how undecisive the price action is.

Keep an eye on struggling names in tech like Nvidia: If they come back from here, Nasdaq should follow suit.

If the big names keep getting offered, ther path ahead might be a bit more grim.

Nasdaq technical levels of interest

Resistance Levels

• current ATH 25,224
• 1.618 Fib-Extension resistance between 25,200 and 25,300
• Momentum Pivot 24,750 to 24,800
• Monday highs and 4H MA 50 24,890

Support Levels

• End September Support and MA 200 24,300 (morning rebound)
• Friday lows 24,016
• August 12 ATH zone turning support (23,950 to 24,020)
• 23,000 Key Support
• Early 2025 ATH at 22,000 to 22,229 Support

S&P 500 4H Chart

S&P 500 4H Chart, October 14, 2025 – Source: TradingView

Similarly as the Nasdaq, sellers have appeared around the momentum pivot and the overall action might not be as bullish as it was the past few months – Keep an eye on sentiment.

A pattern that emerges is the ongoing break-retest action of the main May upward channel – short term technicals are looking more neutral than anything for now.

The price action will be interesting for the time to come, expect volatility.

S&P 500 Trading Levels:

Resistance Levels

• 6,774 (current All Time-Highs)
• Key current Resistance 6,745 to 6,760
• Key Pivot Zone 6,670 to 6,700
• potential resistance (1.618 fib - 6,790 to 6,800)

Support Levels

• 6,570 to 6,600 Key Support
• FOMC and daily lows 6,562
• 6,490 to 6,512 Previous ATH now Support (MA 200 Confluence)
• 6,400 Main Support
• 6,210 to 6,235 Main Support (August NFP Lows)

Safe Trades!

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