MMA Weekly Report Nikkei Stock Average By Raymond Merriman Jul.11 2022

1. Review

Last week, the Nikkei Stock Average closed at 26,517, up 581 points from the previous week. The week's low was 25,945 on Monday the 4th. The week's high was 26,881 on Friday the 8th. Although the week's high exceeded the resistance line for the week, the close was below it, triggering a bearish signal. However, the week's close price surpassed the Weekly Trend Indicator Point (TIP) for the first time in four weeks, so the underlying trend has been upgraded from last week's “downtrend” back to “neutral.”

2. Cycles

As explained in the end-of-year release of ‘Forecast 2022,’ there is a long-term market cycle of 17 years in the Nikkei Average. The starting point is 6,994 on October 28, 2008, and 2022 marks 14 years from that starting point.

This cycle is divided into two 8.33-year subcycles, with the front half ending at a double bottom of 14,864 on June 24, 2016 and 14,865 on February 12, 2016. The back half (Second 8.33-year cycle) has begun from there.

Furthermore, this 8.33-year cycle consists of two four-year cycles, with the first-four-year-cycle bottom appearing at 16,358 on March 19, 2020. The current (second) four-year cycle, based on this low, is entering its 28th month in July.

To continue, please refer to the PDF.

* MMA Report is analyzed from Mr. Meriman’s (Merriman’s) unique perspective and is prepared for information purposes only and does not provide buy/sell recommendations.

* The final investment decisions are solely the responsibility of the reader.

* Unauthorized copying or distribution of this report constitutes a breach of contract. If such breach is discovered, legal action may be taken, and even within your subscription period we may discontinue distribution. We appreciate your understanding and cooperation.