MMA Weekly Report Nikkei Stock Average By Raymond Merriman Dec.12 2022

1. Review

Last week the Nikkei Stock Average closed up 123 points from the previous week, at 27,901. The week’s low was 27,415 on the 8th (Thursday). The week’s high was 27,952 on the 9th (Friday). The week’s low approached the weekly downside support line but did not break below it and rebounded. At the close, it moved within the range between the weekly downside support line and the upper resistance line, so it was neutral. Furthermore, because this close price also fell below the Weekly Trend Indicator Point (TIP) for the second consecutive week, the overall uptrend remained in a “neutral” state.

2. Cycles

As explained in Forecast 2023 published on December 26, there exists a long-term market cycle for the Nikkei Average with an 17-year span. The starting point is October 28, 2008, at 6,994, and as we enter 2023, we move into the 15th year from the starting point.

This cycle is divided into two 8.33-year segments, with the first half ending at the “double bottom” of 14,864 on June 24, 2016 and 14,865 on February 12 of the same year. The latter half (the second to 8.33-year cycle) has begun.

To read more, please refer to the PDF.

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