MMA Weekly Report Nikkei Stock Average By Raymond Merriman Aug. 28, 2023

1. Review

Last week, the Nikkei Stock Average closed up 173 points from the previous week at 31,624. The week's low was 31,409 on Monday the 21st. The week's high was 32,297 on Thursday the 24th. Although the weekly high exceeded the upper resistance line, the closing price was below it, signaling a bearish trigger. Furthermore, this closing price was below the Weekly Trend Indicator Point (T.I.P.: 32,200 last week) for seven out of eight weeks, so the underlying trend remains in a “downtrend.”

2. Cycles

As explained in Forecast 2023, released last December, the Nikkei Stock Average has a long-term market cycle of 17 years. Its starting point is 6,994 on October 28, 2008. 2023 marks the 15th year of that cycle. This cycle is divided into two halves by an 8.33-year cycle, with the first half ending at 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 begun.

For details, please refer to the PDF.

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