MMA Weekly Report Nikkei Stock Average By Raymond Merriman May 27, 2024

1. Review

The Nikkei Stock Average closed last week down 141 points from the previous week at 38,646. The week's high was 39,437 on Monday the 20th. The week's low was 38,367 on Friday the 24th. Last week, although the high exceeded the weekly resistance line, the close was below it and moved between the lower support line and the upper resistance line, thus triggering a bearish signal for three weeks in a row. However, the close this week exceeded the Weekly Trend Indicator Point (TIP) for three consecutive weeks. Therefore, the underlying trend would normally be raised from “Neutral” to “uptrend,” but on a weekly basis last week closed as a bearish candle, so the “Neutral” state remains in place.

2. Cycles

As I explain in my book, “Forecast 2024,” there exists a long-term market cycle of 17 years in the Nikkei Stock Average. Its starting point is October 28, 2008, at 6,994. This cycle is divided into two 8.33-year subcycles, 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. From here, the second half (the second 8.33-year cycle) begins. Therefore, 2024 corresponds to the 16th year of that cycle.

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