MMA Weekly Report Nikkei Stock Average By Raymond Merriman Aug.21 2023

1. Review

Last week, the Nikkei 225 closed at 31,450, down 1,022 points from the previous week. The week's high was 32,613 on Monday the 14th. The week's low was 31,275 on Friday the 18th. The closing price was below the weekly support line, so it was bearish. Furthermore, this closing price was below the Weekly Trend Indicator Point (TIP) for 6 of the last 7 weeks, indicating that the overall trend remains in a “downward trend” state.

2. Cycles

As explained in The Forecast 2023, published last December, the Nikkei 225 has a long-term market cycle with an 17-year period. Its starting point is October 28, 2008, at 6,994. 2023 is the 15th year of that cycle. This cycle is divided into two halves with an 8.33-year cycle, ending the first half with the “double bottom” formed by 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 now begun.

The continuation is available in the PDF.

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