Nikkei, Dow and NASDAQ consolidate below recent highs
Nikkei 225 consolidates below three-month high
The Nikkei 225 came off this week’s three-month high at 40,286 and remains under pressure as Japan's trade balance swung to a deficit as the country's exports fell for the first time in ten months.
The 7 October low at 38,670 offers minor support, together with the 200-day simple moving average (SMA) at 38,650. Were this support zone to give way, the 55-day SMA at 38,032 would be next in line.
Only a fall through the 27 September low at 37,265 would point towards a medium-term top being formed.
Minor resistance can be spotted along the breached August-to-October uptrend line at 39,450 and around the psychological 40,000 mark.
Dow Jones Industrial Average resumes its ascent
This week’s minor blip to Wednesday’s 42,676 low is followed by a rise towards the Dow Jones' new record high at 43,176. Further up beckons the 43,500 mark.
While this week’s low at 43,176 and the September-to-October uptrend line at 42,560 hold, immediate upside pressure should be maintained.
NASDAQ 100 recovers from Wednesday’s low
The NASDAQ 100's rise from its early October 19,611 low has last week taken it to its three-month high at 20,499, to above its September peak at 20,316, and close to its July record high at 20,760. While Wednesday’s low at 20,034 underpins, the July, September and current October peaks remain in focus.
Were 20,034 to give way, though, the August high at 19,938 would be back in the picture, ahead of the 19,611 early October low.