Dow & Nasdaq 100 Hold Firm while Nikkei 225 Drops Back​​​​

Article by IG Chief Market Analyst Chris Beauchamp

Dow Jones, Nasdaq 100, Nikkei 225 Analysis and Charts

​​​Dow steady around 34,000

​The index saw its huge rally stall on Monday, perhaps unsurprisingly given the gains made last week and the lack of data during the session. ​The price finds itself above the 50- and 200-day simple moving averages (SMA), and sits right at the highs from early October. Trendline resistance from the July peak is the next area to watch, along with the 100-day SMA.

​​A reversal below the 200-day SMA might indicate some short-term consolidation.

Dow Jones Daily Chart

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​Nasdaq 100 sits below trendline resistance

​The price has returned to the upper bound of the current descending channel, after its best week since January.​In the short-term, the price will target the October highs at 15,330, and then on towards 15,540, the highs of late August and early September.

​A close back below 14,920 would bring a bearish view into play once again.

Nasdaq 100 Daily Chart

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​Nikkei 225 pulls back towards 100-day MA

​Like other indices, the Nikkei enjoyed an impressive rally last week, moving higher off the 30,500 zone. ​Further upside now targets trendline resistance from the June high, which may come into play near 33,000. Beyond this, the September highs at 33,500 are the next target.

​Sellers will need a move back below 32,000 to suggest a more serious pullback has developed, which would then target the 200-day SMA and the October lows around 30,500.

Nikkei 225 Daily Chart