Market Analysis: Dow, Nasdaq, and Nikkei Movements
Dow Jones Gains Momentum
The Dow Jones continued its upward trajectory on Wednesday, surpassing the 39,000 mark. This move signals a possible test of the record highs just shy of 40,000, following a stagnant session on Tuesday.
The index saw a significant support level at 37,820 towards the end of April, reinforcing a bullish outlook. However, a drop below 38,200 could reverse this trend and prompt a retest of the late April lows.
Nasdaq 100 Faces Resistance
The Nasdaq 100 struggled to exceed the highs of Tuesday, with the 50-day simple moving average (SMA) preventing further declines. The index is now approaching the peak levels observed in March and April, near 18,500. Surpassing this could set a new record high.
Falling below 17,700 would indicate a potential downward movement.
Nikkei 225 Experiences Setback
The Nikkei 225 has encountered resistance, halting its recovery from April’s lows during recent sessions. Despite a depreciating yen, the index struggled to maintain its upward momentum, stalling below 39,000 and the 50-day SMA.
Breaking above 39,000 would rejuvenate the bullish sentiment, potentially testing the trendline resistance from March highs. Support from April’s lows is crucial and sits around 38,000.
