Nasdaq 100, Dow and Nikkei 225 Make Headway in Morning Trading

Article by IG Chief Market Analyst Chris Beauchamp

Nasdaq 100, Dow Jones, Nikkei 225 Analysis and Charts

​​​Nasdaq 100 continues its recovery

​The index has recovered from the lows seen last week, after nearing the 200-day SMA. ​For the moment, the pullback from the October highs is still in place and leaves the bearish view intact for the short-term. A close above 14,400 (Monday’s highs) would suggest that the buyers remain in control, and a bullish daily MACD crossover would bolster that view.

​​This would then see the price target 14,800 initially. A reversal below 14,150 would indicate that the sellers are back in charge.

Nasdaq 100 Daily Chart

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​Dow edges above 33,000

​Monday saw the index surge back towards 33,000, after a drop on Friday to fresh seven-month lows. ​Having moved back above the early October low, the index now looks in more short-term bullish form. The 200-day SMA and the 34,000 highs from early October now come into view.

​A failure to hold above 32,700 would be a negative development for this bullish view, and a close back below 32,500 would add further weight to the bearish outlook.

Dow Jones Daily Chart

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​Nikkei 225 rallies off support zone

​Once more the price has begun to rally from the 30,500 area, in a similar move to that seen at the beginning of the month. ​In the short-term a rebound targets trendline resistance from the September high, and then the October highs around 32,500. Beyond this, gentler trendline resistance from the June highs comes into view.

​Sellers have been unable to drive the price below 30,500 in any meaningful fashion, so while this holds the bearish view is limited.

Nikkei 225 Daily Chart