Dow surges to new high and Hang Seng powers higher, but Nikkei 225 falls back
Dow hits new high
The Dow Jones index touched a fresh record high on Monday, having enjoyed a strong rally throughout September so far.
For the moment, it is not displaying any nervousness ahead of the Federal Reserve (Fed) decision, at which a 50 basis point (bp) cut in interest rates is viewed as a strong possibility. Clear air lies above the price, with 42,000 the next obvious target.
In the short term a reversal back below 41,000 might indicate some weakness is at hand, though the longer-term uptrend continues to look strong.
Nikkei 225 drifts lower as yen strengthens
Gains have slipped away for the Nikkei 225 index over the past week, and a lower high may well have been formed a week ago.
The early month low at 35,000 is the first target, and a close below this would open the way to the 33,000 level seen in early August. Bulls will want to see a move back above 37,150 and the 50-day simple moving average (SMA) to reassert control.
Hang Seng pushes higher
The Hang Seng powered higher on Tuesday, reaching a two-week high, and putting it on course to the late August high at 17,900.
A higher low has formed around 17,000, and has helped to restore a bullish view for the index. The August bounce failed to hold 18,000, so a close above here will help to cement a rally and target the July highs just below 18,400.