Nasdaq 100, Dow Jones 30 and S&P 500 Forecasts – Middle East Jitters & Earnings Drive Volatility

• Nasdaq 100 rallied to test 28,500 resistance with the 50-day EMA above that level; the index is recovering off its 200-day EMA support
• S&P 500 approached the crucial 7,500 level with next resistance at 7,600, while the 50-day EMA provides underlying support
• Markets remain shaky due to Middle East geopolitical jitters, unwinding of AI trades, and ongoing earnings season uncertainty

Market Summary: US Indices Navigate Volatility Amid Middle East Tensions and Earnings Season

Key Market Movements (July 31, 2026):

Major US indices showed modest attempts at recovery heading into the weekend, with traders exercising caution due to geopolitical concerns and ongoing earnings season:

• S&P 500: Down 0.14%, trading at 7,469.31, testing the critical 7,500 level with resistance at 7,600
• Nasdaq 100: Down 0.15%, rebounding to 28,365.3 after recovering from its 200-day EMA, facing resistance at 28,500
• Dow Jones 30: Down 0.08%, trading at 52,488, maintaining its uptrend above the 50-day EMA support near 52,500

Technical Analysis:

All three indices are testing key resistance levels, with their respective 50-day exponential moving averages providing critical support. The Nasdaq faces additional resistance from its 50-day EMA just above 28,500. The Dow Jones continues its established uptrend, using the 50-day EMA as a trend line. Short-term pullbacks may present buying opportunities, though market sentiment remains cautious.

Market Drivers:

1. Middle East tensions creating elevated geopolitical risk
2. Ongoing earnings season generating company-specific volatility
3. AI trade unwinding causing periodic market instability
4. Weekend risk concerns prompting hesitation among New York-based traders

Outlook:

Markets remain "shaky" according to senior analyst Christopher Lewis, with multiple uncertainties weighing on sentiment. The combination of earnings volatility, geopolitical risks, and technical resistance levels suggests continued choppy trading ahead, though underlying uptrends remain intact for now.