Dow and Nikkei 225 Hit by Selling, Nasdaq 100 Losses Contained for Now

Dow Jones 30, Nasdaq 100, Nikkei 225 – Analysis and Charts

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Dow’s May gains disappear

The index has lost most of the gains made since the beginning of the month, having dropped 2000 points in the space of two weeks.This has turned the view from short-term bullish to one of near-term caution. Buyers stepped in above 37,000 in mid-April and then around 37,850 at the end of the month, so these areas may provide some support. A close below the mid-April low could then see the index test the 200-day simple moving average (SMA) for the first time since November.

In the short term, a close back above 38,500 might signal that a low has been formed.

Dow Jones Daily Chart

of clients are net long.

of clients are net short.

Change in	Longs	Shorts	OI
Daily	27%	-12%	5%
Weekly	111%	-31%	9%

Nasdaq 100 losses limited so far

Strength in tech names has so far prevented this index from suffering losses like those seen on the Dow over the second half of the month.The index remains within easy striking distance of its previous highs, and a close above 18,800 might mark the start of a new leg higher, towards 19,000.

A close back below 18,400 would see the price fall below the highs set in February and March, and could then result in a test of the 50-day SMA.

Nasdaq 100 Daily Chart

Buyers emerge at Nikkei session lows

Wednesday’s session saw the index take heavy losses, and resulted in a close well below trendline support from the April low. The price also reached its lowest level for three weeks, and trading on Thursday saw additional losses that saw it briefly hit a one-month low. While buyers have stepped in at the lows of the session so far today, they will need to drive the price back above 38,300 to suggest that some stabilization has occurred.

Additional declines from the current level open the way to the mid-April lows around 37,000.