Dow holds firm and DAX retreats, but Nikkei 225 supported by policymaker comments
While the Dow is holding near its highs, the DAX has continued to fall. Meanwhile, comments from the Bank of Japan have helped the Nikkei 225 to gain.
Dow holds steady
Overall, the Dow Jones index continues to trade in a sideways fashion, holding on to most of its gains from September but unable to make much further progress.
Further consolidation seems to be the order of things for the index, unless the price drops back below recent short-term support around 41,840.
Meanwhile, a firm close higher today might spark a fresh run to new highs.
DAX slips back
A retreat from recent DAX 40 record highs goes on, and now the previous highs from mid-September around 19,035 are now in focus.
A close below this and then below 18,935 helps to bolster the case for a more severe short-term pullback, perhaps towards the 50-day simple moving average (SMA), currently 18,499.
A recovery back above 19,200 would help to suggest that a short-term low has formed.
Nikkei 225 lifted by BoJ comments
Cautious commentary from the Bank of Japan (BoJ) around the prospects for another rate hike has helped to boost the Nikkei 225, continuing the bounce from last week’s low.
This higher low helps maintain the bullish view, supporting higher prices for the time being and a possible move back to 40,000.
A close back below 37,300 would dent this view, though trendline support from early August remains in place for now.
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