Article by IG Chief Market Analyst Chris Beauchamp

Dow Jones, Nasdaq 100, Nikkei 225 Analysis and Charts

Dow back below 200-day MA

​The volatile trading of the past two weeks continued on Wednesday. The index dropped back below the 200-day simple moving average (SMA), after testing the 34,000 level on Tuesday.​A close below 33,400 might signal that the bounce from early October has been reversed, and a move back to October’s lows at 32,800 might then begin. The May lows around 32,730 then come into view.

​Buyers need a close back above 33,800 and then above the 200-day SMA to indicate a revived rally is in progress.

Dow Jones Daily Chart

See the latest Dow Jones sentiment changes

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​Nasdaq 100 falls back again

​It has been a week since the index hit trendline resistance from the July highs, and in that time the price has slipped back below the 100- and 50-day SMAs. ​While the index is still some 400 points higher from the early October low, upward momentum has firmly stalled. Additional declines now target the 14,500 October low. A close below 14,400 would mark a bearish development and potentially open the way to the 200-day SMA.

​ Bulls will need to see a close back above 15,150 to indicate that another attempt to break trendline resistance is in play.

Nasdaq100 Daily Chart

​Nikkei 225 heads back towards 200-day MA

​Another test of the 200-day SMA could be in prospect here, as fresh declines take the index further away from trendline resistance.​The past week has seen upward momentum fizzle out, as trendline resistance from the September high and the 50- and 100-day SMAs hold back progress. Now we wait to see if the bulls can mount a defence of the 200-day SMA as they did at the end of September.

​A close back above 32,200 would be needed to suggest that the bullish view has reasserted itself. Below the 200-day SMA, the price targets the September low of around 32,300.

Nikkei 225 Daily Chart