Dow at record high and Nikkei 225 recovers, but CAC40 comes under pressure
While the Dow has rebounded from Monday’s lows and the Nikkei 225 has clawed back some recent losses, the CAC40 has fallen back.
Dow holds near highs
The Dow Jones index sits at a record high, rebounding from yesterday’s lows.
The past month has seen the price rally from the 50-day simple moving average (SMA). Further gains target last week’s intraday high at 42,637.
In the short-term, a pullback targets trendline support from the August lows, as well as the late August high around 41,600.
Nikkei 225 pushes higher
The Nikkei 225 index is slowly recouping the losses it suffered last week on the news a new prime minister.
After dropping below the 200-day SMA on Friday, the price has steadily recovered, and a new challenge of recent highs around 39,200 looks possible. Beyond this lies the psychological 40,000 level, and then on to the peaks of early summer.
Trendline support from early August comes into play towards 37,000.
CAC40 in retreat
While other indices push higher, the French CAC40 has come under pressure once more.
A continuation of this downward move could see the price test trendline resistance from the August low. This underpinned the move higher in September, so a break below this, and below the 7550 area would put the sellers in charge.
This might then set up a test of the September low. Buyers will need to avoid a close below trendline support to maintain the medium-term bullish view.
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