The US equity markets are sitting at critical levels as we move deeper into August 2025. After months of strong rallies across the major indices, momentum is beginning to cool in some areas, while others continue to show strength. Let’s break down the S&P 500, NASDAQ 100, Dow Jones, and Russell 2000 to see where things stand.
S&P 500 (US500)
The S&P 500 has been grinding higher, consolidating around 6,440, just shy of recent all-time highs.
- Momentum: RSI has flattened, hinting at exhaustion, and a small bearish divergence is forming.
- Levels to watch: Support sits at 6,292 and 6,174, while upside resistance remains at 6,460–6,500.
- Trend: Price remains comfortably above the 100 and 200-day moving averages, which keeps the bigger picture bullish. But in the short term, the index may need a breather.
NASDAQ 100 (NAS100)
Tech stocks have carried much of the rally this year, but the NASDAQ is now showing signs of cooling. Currently trading at 23,590:
- Momentum: RSI has pulled back from overbought territory, and PPO momentum has started to flatten.
- Levels to watch: Support lies at 22,894, with deeper support near 21,914.
- Trend: Still firmly bullish, but the extended rally leaves the index vulnerable to a corrective pullback.
Dow Jones (US30)
The Dow is proving to be the most resilient of the bunch, pushing into fresh highs at 45,180.
- Momentum: RSI shows steady strength, with no bearish divergence like we see in the S&P and NASDAQ.
- Levels to watch: Support sits at 44,969 and 44,290, while resistance is in the 45,500–45,700 zone.
- Trend: The Dow is showing continued momentum, suggesting leadership could be shifting toward blue-chip names.
Russell 2000 (US2000)
Small caps have quietly been staging a strong recovery and are now consolidating near 2,316.
- Momentum: RSI is trending higher, and the PPO has flipped bullish, giving this index a stronger technical setup than earlier in the year.
- Levels to watch: Resistance is overhead at 2,354–2,400, with support back at 2,129 and 2,110.
- Trend: If momentum continues, the Russell could be setting up for a breakout that broadens market participation beyond the megacaps.
Final Take
The US market picture is mixed but still constructive:
- The S&P 500 and NASDAQ are stalling at highs, flashing early signs of slowing momentum.
- The Dow Jones continues to press higher, showing relative strength.
- The Russell 2000 is looking healthier, hinting at a possible rotation into small caps.
Overall, the bullish trend remains intact across the board, but investors should be prepared for a short-term pause or mild pullback before another leg higher.
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