Nikkei 225, Dow and NASDAQ 100 await NVIDIA results
Nikkei 225 stays range bound
The Nikkei 225 index has been trading sideways around the 200-day simple moving average (SMA) at 38,402, but below the 55-day SMA at 38,525 over the past couple of weeks. If the index can move above both moving averages, the next target would be the late July high at 39,281.
A break below Monday's low at 37,817 would engage the previous Monday’s low at 37,163 and may lead to a retest of the 36,000 level.
As long as the 19 August low at 37,163 low holds, the near-term bullish outlook remains intact.
Dow Jones Industrial Average trades near record high
The Dow Jones rally is awaiting NVIDIA earnings on Wednesday.
A rise above Monday’s 41,428 record high would engage the 41,500 region whereas a fall through Tuesday’s 41,091 low would likely lead to the 20 August high at 40,958 being revisited.
The medium-term uptrend remains intact as long as Thursday’s 40,812 low holds.
NASDAQ 100 awaits NVIDIA results
The NASDAQ 100 continues to trade around the 55-day moving average at 19,550, having last week come off its 19,938 one-month high. This needs to be bettered, for the June high at 20,006 to be reached.
Since the stellar 166% NVIDIA year-to-date (YTD) share price rise has been responsible for over a third of the NASDAQ 100’s gain this year, its earnings out on Wednesday after-hours are expected to have a major impact on the indices’ near-term trend.
A fall through Tuesday’s low at 19,374 could trigger a more significant correction towards the 23 May high at 18,949.