Dow Jones, Nasdaq 100, Nikkei 225 Analysis and Charts

​​​Dow higher, but still below record high

​The index has edged higher over the past week, but an attempt to make strong gains yesterday was knocked back. ​This contrasts with the S&P 500 and the Nasdaq 100, which continue to make new highs. It is important to note that the index is still just 1.7% off its record highs from May, though its performance this year is not as strong as the other two US indices.

​​A close above 39,500 could help to trigger a new move higher, opening the way to the previous record high. Recent gains have been underpinned by the 50-day simple moving average (SMA), so a close below this (currently 39,070) might signal that some short-term weakness is ahead.

Dow Jones Daily Chart

​Nasdaq 100 rally continues

​The past week has seen the index march higher, moving through 20,000, with no sign of a reversal as yet. ​Money continues to flow into the big-name tech stocks, which have driven the index, and the S&P 500, to new highs over the past week. While the price continues to move away from the 50-day SMA (currently 6.9% away), the buyers remain firmly in charge.

​​In the short-term, a close back below the mid-June high at 20,000 might indicate that at least a short-term pullback is on the cards.

Nasdaq 100 Daily Chart

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​Nikkei 225 hits new high

​The Nikkei ’s gains accelerated overnight, hitting a fresh high and moving through 41,000 for the first time. ​Bullish momentum may continue to carry the index higher, though Jerome Powell’s testimony today and Thursday’s US inflation data might provoke some volatility.

​Sellers have been firmly shut out of this index over the past three weeks, though a close below the previous high at 40,574 might indicate that the price has moved into a consolidation phase.

Nikkei 225 Daily Chart