Nikkei 225 boosted by strong Dow and NASDAQ 100
Nikkei 225 regains Monday’s sell-off
Following profit taking on Monday, the Nikkei 225 regained its losses on Tuesday morning, helped by another strong showing of US indices.
Last week’s high and the 200-day simple moving average (SMA) at 38,152-to-38,239 are currently being tested, slightly above which the 55-day SMA can be spotted at 38,601. If overcome, the late July high at 39,280 would be next in line.
The short-term bullish bias is likely to remain in play while Monday’s low at 37,163 underpins.
Dow Jones Industrial Average surges ahead
The seems to be no stopping the Dow Jones with it being on track for its sixth consecutive day of gains whilst approaching its late July high at 41,207. Slightly further up sits the Dow’s all-time high at 41,382.
Immediate upside pressure should be maintained while Monday’s low at 40,606 holds.
NASDAQ100 continues its advance
The NASDAQ 100 has not only risen above its 55-day SMA at 19,501 but, more importantly, also above its late July peak at 19,577 with the late June high at 20,006 representing its next upside target.
Previous resistance, because of inverse polarity, should now act as support, that is to say the 19,577-to-19,501 area.