MMA Weekly Report Nikkei Stock Average By Raymond Merriman Feb.5 2024

1. Overview

Last week, the Nikkei 225 closed at 36,158, up 406 points from the previous week. The week’s low was 35,158 on Wednesday, January 31. The week’s high was 36,441 on Friday, February 2. Although the week’s high approached the upper resistance line, it did not break above and reversed. The closing price was below, triggering a bearish signal for the second consecutive week. However, the bullish streak still appears to be continuing. In fact, the weekly closing price exceeded the Weekly Trend Indicator Point (TIP) for six consecutive weeks, thus the underlying trend remains in an uptrend.

2. Cycles

As discussed in this month’s release of “Forecast 2024,” the Nikkei 225 has a long-term market cycle of 17 years. The starting point is October 28, 2008, at 6,994. 2024 marks its 16th year. This cycle is divided into two parts by an 8.33-year cycle, with the first half ending at the double bottom formed by June 24, 2016 at 14,864 and February 12, 2016 at 14,865. The second half (the 2nd – 8.33-year cycle) has begun here.

More details can be viewed in the PDF.

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