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Nick Goold

Dow Jones

The Dow Jones Index had another positive week as investors tried to forget 2022. The release of US inflation data matched expectations and showed inflation is starting cool which is positive for equities. While there are worries about economic growth in 2023, inflation and interest rates are the biggest concern for US equity markets.

A quiet week is expected with the US on holiday Monday and only one important news event this week, Wednesday's US retail sales. A negative release is forecasted, and any upside surprise could spur buying in equities.

Daily Dow chart Jan 16

Resistance: 34500, 35000, 35500, 36000, 36500, 37000

Support: 33500, 33000, 32500, 32000

Nikkei 225 index

The Nikkei was looking positive at the start of last week but further falls in the USDJPY pushed the Nikkei index back down again. The Bank of Japan meets this week, and the market is nervous following the fall following last month's meeting. While another change in Japanese monetary policy is unlikely, the USDJPY is still vulnerable to further falls, which would push the Nikkei lower.

Support at 25500 remains strong, and current levels present a high-risk reward buying opportunity. However, a break of 25500 could trigger a quick fall, so it should be a volatile week ahead for the Nikkei.

Resistance: 26000, 26500, 26650, 27000, 27500, 28500

Support: 25500, 25000, 24500, 23500