MMA Weekly Report Nikkei Stock Average By Raymond Merriman Jul.31 2023

1. Review

The Nikkei Stock Average closed last week at 32,759, up 454 points from the previous week. The weekly high was on the 27th (Thursday) at 32,938. The weekly low was on the 28th (Friday) at 32,037. Although the weekly high exceeded the upper resistance line, the close stayed within this area, indicating mostly bullish sentiment. Therefore, the sequence of bearishness may have ended. In fact, the weekly close exceeded the Weekly Trend Indicator Point (W-TIP: last week 32,525) for the first time in four weeks, so the underlying trend has been upgraded from a “downtrend” back to “neutral.”

2. Cycles

As explained in Forecast 2023, there is a long-term market cycle of 17 years in the Nikkei Stock Average. Its starting point is October 28, 2008, at 6,994. 2023 is its 15th year. This cycle is divided into two halves by an 8.33-year cycle, 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 second half (the 2nd–8.33 year cycle) has begun from here.

Please see the continuation in the PDF.

* MMA Report is prepared from Mr. Meriman’s unique perspective for information purposes and does not constitute trading recommendations.

* The final investment decision should be made at your own responsibility.

* Unauthorized copying or distribution of our report is a breach of contract. If such breach is discovered, legal action may be taken, and distribution will be terminated even within the subscription period. We appreciate your understanding and cooperation.