U.S. Stocks Slide Again as War Tensions Mount: Key SPX Levels Every Trader Must Watch This Week

Another Week of Alternating Gains and Losses

U.S. stock indexes gave up much of the ground they had gained the previous week, extending a pattern of alternating gains and losses that has characterized early 2026. The Nasdaq declined 0.9% and the S&P 500 slipped 0.4%.

January’s modestly positive momentum didn’t extend into February for the S&P 500 and the Nasdaq, as both indexes finished the month in negative territory, with the former down 0.9% and the latter 3.3% lower. In contrast, the Dow eked out a 0.2% gain, extending its string of positive months to 10 in a row.

Bond Yields Drop to Four-Month Lows

Prices of government bonds rose on Friday, sending yields lower, to cap a month of strong fixed-income performance. The yield of the 10-year Treasury fell to the lowest level in more than four months, finishing around 3.96% on Friday. At the end of January, the yield was 4.26%.

Sector Rotation Continues

Two months into 2026, U.S. equity sectors that trailed the broader market last year have moved up to the top of this year’s performance rankings. Through February, energy, materials, and consumer staples were the top three sectors on a year-to-date basis. Meanwhile, last year’s leaders, communication services and information technology, were lagging.

Gold Resumes Its Rally

After pausing in recent weeks, the year-to-date rally in gold prices resumed and the precious metal climbed closer to the record high of more than $5,500 per ounce set in late January. Late Friday, gold futures were trading around $5,290. Silver prices also climbed during the week.

War Tensions Add a New Layer of Pressure

The war in Iran will put additional pressure on prices heading into the new week. Sunday night futures are showing substantial losses, with NDX futures down 110 and SPX futures down 33, indicating a possible weak start to the trading week.

Key Technical Levels to Watch

This is where it gets critical. Key technical levels to monitor closely are SPX 6,775 and 6,730. A decisive penetration with volume could lead to a test of 6,620 and possibly 6,550.

Key resistance near 6,950-53 and 7,000 and above are the keys to any upside surge.

Next week could be critical in determining the direction of the market for weeks to come, so vigilance to the support and resistance levels above will be mandatory.

In any case, as we always do at TheTechTrader.com, we’ll “Trade What We See, Not What We Think.” 

HARRY BOXER, THE TECHNICAL TRADER | www.thetechtrader.com