Dow, Nasdaq 100 and Nikkei come under pressure following hawkish Powell testimony

Article by IG Chief Market Analyst Chris Beauchamp

Dow Jones, Nasdaq 100, Nikkei 225 Analysis and Charts

​​​Dow touches one-week low

​The index continues to retreat from the six-month high it hit last week, shedding ground rapidly in the direction of the 50-day SMA. ​The bullish view might still hold sway should the index be able to create a low above the 100-day SMA, though for the moment short-term momentum is firmly to the downside.

​A rebound above 34,000 might yet see the bullish view revived and allow the index to contemplate a fresh attempt to move back towards the 34,500 level.

​ Dow Jones Daily Price Chart - June 22, 2023

​Nasdaq 100 drifting lower

​The retreat from last week’s highs continues, although it will take much bigger losses to really put a dent in the downtrend.​An initial target would be trendline support from March, likely to come into play around 14,500. Even this would only be a two-week low. Below this, the 50-day SMA is the next target.

​For the moment there is little sign of a recovery, but a recovery above 15,000 would signal that the buyers are in charge once again.

Nasdaq 100 Daily Price Chart - June 22, 2023​

​Nikkei 225 consolidates after hitting 30-year highs

​The strong run higher here has stalled, the overall trend is intact. ​The price has consolidated since mid-June, which is a reflection of the overextension of the price following the gains made throughout April, May, and June.

​Initial declines may target trendline support from early May, and then on down towards the 50-day SMA.

Nikkei 225 Daily Price Chart - June 22, 2023