Dow, Nasdaq 100 and Nikkei 225 Continue their Rally

Article by IG Chief Market Analyst Chris Beauchamp

Dow Jones, Nasdaq 100, Nikkei 225 Analysis and Charts

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​​​Dow returns to 35,000

​The index is back at the 35,000 area, the highs from early September.​The past three weeks have seen the market make huge gains, with no sign of a reversal yet in view. A close above 35,100 would then open the way to the July highs at 35,650.

​A short-term drop might find support around the 100-day SMA, or further down towards 34,000.

Dow Jones Daily Chart

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​Nasdaq 100 hits new 2023 high

​Wednesday’s session briefly saw the index touch the highest level since the beginning of 2022. ​The surge from the 200-day SMA has witnessed a 13% gain for the index, breaking out of the summer descending channel and opening the way to more upside in the direction of the 2022 highs towards 16,600.

​Short-term support might be found around 15,500, the August highs, and then down towards the 100-day SMA.

Nasdaq 100 Daily Chart

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​Nikkei 225 reaches trendline resistance

​November’s rally has carried the index back to trendline resistance from the June highs.​There may be some volatility around this area, which is close to the September lower high, but a close above 33,700 would open the way to the 34,000 highs of June.

​​In the short-term, the mid-October highs around 32,500 might provide some support if a pullback develops.

Nikkei 225 Daily Chart