MMA Weekly Report Nikkei Stock Average By Raymond Merriman Dec.19 2022

[Notice] During the last week of December, the issue on the 26th will be closed. This period is usually a holiday season when the market thins. Wishing everyone a Merry Christmas and a Happy New Year!

— Raymond A. Meriman

1. Review

Last week the Nikkei average closed down 373 points at 27,527 from the previous week. The week's high was 28,915 on Wednesday the 14th. The week's low was 27,488 on Friday the 16th. The week's high exceeded the resistance line, but then pulled back. Since the closing price for the week fell below the weekly support line, the tone is very bearish. Furthermore, this closing price also fell below the Weekly Trend Indicator Point (TIP) for three consecutive weeks, so the overall trend has been downgraded from “neutral” to “downtrend.”

2. Cycles

As explained in the Forecast 2023 to be released on the 26th, there exists a long-term market cycle of 17 years for the Nikkei average. Its starting point is 6,994 on October 28, 2008, and entering 2023 it will be the 15th year from that point.

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

For more, please see the PDF.

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