MMA Weekly Report Nikkei Stock Average By Raymond Merriman Jan.5 2023

Happy New Year! We look forward to your continued support this year as well. ― Raymond A. Meriman

【Note】From December 29, 2022 to January 18 of this year, Mercury is in retrograde. During retrograde periods, technical analysis and support & resistance areas are less reliable than usual, so it is prudent not to engage in new position trading. This is because, for the reasons above, “scams” or false signals often appear, and the signal can suddenly be negated. That said, for active and short-term trading at intervals of 1–4 business days, the following analytical methods should still be reasonably useful, in our MMA view.

1. Review

During the week of the year-end close, the Nikkei Stock Average finished down 140 points from the previous week at 26,094. The high for the week was December 27, 2022 (Tuesday) at 27,488. The low for the week was December 29, 2022 (Thursday) at 25,953. The range for the week moved between the lower support line and upper resistance line, so it was neutral. However, since the week's close price fell below the Weekly Trend Indicator Point (TIP) for five consecutive weeks, the underlying trend remained in a “downtrend.”

2. Cycles

As discussed in the released “Forecast 2023” on December 26 of last year, the Nikkei Stock Average has a long-term market cycle of 17 years. Its starting point is October 28, 2008, at 6,994. 2023 is the 15th year of that cycle.

This cycle divides into two 8.33-year subcycles, with the first half ending in a “double bottom” at the 14,864 level on June 24, 2016 and 14,865 on February 12, 2016. The second half (the 2nd 8.33-year cycle) has now begun.

To read the continuation, please refer to the PDF.

＊ MMA Report analyzes from Mr. Meriman’s unique perspective and is prepared for information purposes. It is not a recommendation to buy or sell.

＊ Please make investment decisions at your own risk.

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