Dow and S&P 500 surge, while Nikkei 225 continues to struggle
US indices were given a boost by yesterday’s inflation data, but the Nikkei 225 has not seen a similar bounce.
Dow rebounds following US inflation reading
Yesterday’s softer core inflation reading in the US provided stock markets with a powerful boost, sending the Dow Jones up 700 points in the cash session.
After dipping below 42,000 in early January, the price has now recovered back to the late December high at 43,300. From here the next target is the 45,000 record high from early December.
Dow Jones daily chart
S&P 500 surges towards 6000
The S&P 500 enjoyed a solid day too, rallying back towards 6000.
Lower highs at 6000 from earlier in January and then at 6040 from late December are the next hurdles to watch, followed up by the 6100 peak from early December.
A close back below 5900 might well signal that a new leg lower has begun.
S&P 500 daily chart
Nikkei 225 struggles below 39,000
The Nikkei 225 has not participated in the global surge, remaining stuck below 39,000.
Dips towards 38,000 this week have been met by buying pressure, as shown by the long wicks on the daily candles. This suggests that support remains strong. However, buyers have been unable to push the price past 39,000, leaving the index stuck in a narrow range.
Nikkei 225 daily chart
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