Nikkei 225 Eyes Bullish Breakout, US Equities Point to Fresh Record | Webinar
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S&P 500 futures are pointing towards a modestly higher open with gains of 0.5% in pre-market. Given that the index is hovering above the bullish 2889-2899 value area, this suggests that the direction is skewed to the upside. As such, the outlook remains positive with eyes on a fresh record high.
Dow Jones futures are on a firm footing as the week draws to a close with gains of 0.6%. The index continues to play catch up relative to the record highs seen in other US indices, which also remains modestly bullish above the 26048 level. On the upside, resistance is seen at 26335.
Eyes are on the all-time high (7697) posted in August following the recovery made in the index after support at the 7390-7450 pivot area held firm. Slight resistance touted at 7640, however a break above could see the index make a run in on 7700.
Since the rejection of the rising trendline from the 2018 low, the Nikkei 225 has pulled back towards the top of the consolidation range that has been in place since May. The near-term target for Nikkei 225 bulls is the August high (23145) in which a break above could see the index make a run in on the next value area at 23538-23860. The BoJ monetary policy will be next week’s key risk event for the Nikkei 225, whereby the central bank is expected to maintain its ultra-dovish policy stance.
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--- Written by Justin McQueen, Market Analyst
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.