Dow Jones index
The Dow fell last week as profit-taking selling depressed prices. US retail sales were below expectations confirming fears 2023 will see lower economic growth. In addition, Google and Microsoft announced significant job cuts, which added to the downbeat mood.
On a positive note, Fed governor Waller indicated he thinks a 0.25 percent rise in interest rates is appropriate at the next meeting. This week's most important economic releases are Thursday's GDP and PCE deflator, the last inflation release before the next US interest rate meeting.
Support remains strong at the year's lows, so we expect a resumption of buying this week. However, while we expect higher levels, it is difficult to see equity prices rising significantly in the current conditions.
Resistance: 34000, 34500, 35000, 35500, 36000, 36500
Support: 33000, 32500, 32000
Nikkei 225 index
A very positive week for the Nikkei 225 index as the market has formed a double bottom pattern at the lows of this year. Last week, the Bank of Japan meeting saw no change in policy which was supportive to a higher level.
While the Nikkei index is looking positive, the market is overbought in the short term, so best to wait until the market returns to the 10-day moving average to buy.
Resistance: 27000, 27500, 28500
Support: 26250, 25500, 25000, 24500, 23500