Dow Jones (DJIA), Nasdaq Weekly Forecast – Bullish Break of Bear Reversal Next?

Nasdaq and Dow Jones indexes stopped at key levels this week, suggesting exhaustion after rallying for a month.

Skerdian Meta•Friday, May 9, 2025•2 min read

Major US stock indices lost their stamina this week

Quick overview

U.S. equity markets ended the week mixed, with the Dow Jones falling 0.16% and most major indices showing slight declines.
Both the Nasdaq and Dow Jones indexes stalled at key resistance levels, indicating potential bearish reversals.
The Russell 2000 small-cap index was the only major gainer for the week, suggesting a rotation into smaller-cap stocks.
Investors are reassessing valuations amid changing expectations around trade tariffs, interest rates, and upcoming earnings reports.

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Nasdaq and Dow Jones indexes stopped at key levels this week, suggesting exhaustion after rallying for a month.

U.S. equity markets ended the week on a mixed note, with most major indices registering slight declines, with Dow Jones falling 0.16% for the week. While Friday’s session showed limited movement, the broader trend suggests markets are pausing after a strong run-up in recent weeks.

Dow Jones Chart Weekly – The Bounce Has Stalled at the 50 SMA

Both the Nasdaq index and the Dow Jones Industrial Average stalled at key resistance indicators, such as the 50 SMA (yellow) on the weekly chart which stopped DJIA this week. That moving average comes at 21,175 points, which was the high for the week, and the weekly candlestick is locking like a doji. That points to a bearish reversal, so let’s see next week how the price action will be.

Nasdaq Chart Weekly – Stalling at the 20 SMA

Nasdaq has also made a strong comeback since the early April low, but it failed at the 50 weekly SMA as well. This moving average used to act as support during pullback when Nasdaq was trading higher, not it might turn into resistance, so let’s see if there will be a bullish break next week or reverse back down.

Closing Levels for Major U.S. Indices – Daily and Weekly Wrap-Up

Daily Performance – Friday Close:

Dow Jones Industrial Average dropped by 119.07 points, or -0.29%, finishing at 41,249.38.
S&P 500 slipped 4.03 points, or -0.07%, closing at 5,659.91.
NASDAQ Composite managed a slight gain of 0.78 points, effectively unchanged at 17,928.92.
Russell 2000 small-cap index declined 3.34 points, or -0.16%, ending the day at 2,023.07.

Weekly Performance Summary:

Dow Jones posted a modest weekly loss of -0.16%, weighed by profit-taking in key sectors.
S&P 500 slipped -0.47% for the week, reflecting cautious sentiment after recent record highs.
NASDAQ ended the week down -0.27%, as big tech showed signs of consolidation.
Russell 2000 was the lone gainer among the major indices, rising +0.11%, signaling some relative strength in smaller-cap stocks.

Investors appear to be reassessing valuations amid shifting expectations around trade tariffs interest rates and earnings, which were mainly positive for Q1, as today’s Rumble Q1 earnings report showed, with sent the RUM stock around 20% higher today.

The Russell 2000’s modest weekly gain hints at rotation into smaller-cap names, but overall, sentiment remains cautious heading into next week’s key inflation data and earnings releases.

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Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.