A quick look at today: the Nikkei was steady today maintaining a 27,700 – 27,854 range before closing at 27,820.
This uncertain state for the Nikkei is reflected by published market data as Japan Services PMI came out at 50.3, while a consensus of analysts was expecting 50.
Nikkei is approaching key support, around 181.86 points away from 27,639. Dipping below could indicate further losses are ahead while a failure to break below this level is likely to be seen positively by market bulls. The MACD is significantly below its signal line, which suggests the market is running out of bearish momentum and could revert to a positive outlook as bulls regain control. The Nikkei's upper Bollinger Band® is at 28,476 and the lower is 27,565.
Despite muted price action in the Nikkei, chart analysis indicates it is positioned for a bullish run in the short term.
While the Nikkei was pretty flat today, mixed performances were seen elsewhere as Hang Seng is trading around 19,518 after ending today's session at 18,675 (up 4.51% today). S&P 500 drops 1.79% today and closed at 4,071.7. Dow Jones lost 1.4% today and closed at 34,430.
Data to be released tomorrow might clear up some of the market fog as Japan Household Spending (YoY) (Oct) is expected today at 23:30 UTC. Japan Household Spending (MoM) (Oct) scheduled to come out today at 23:30 UTC.
Trading mostly sideways for a month. After hitting an important low of 15.42 approximately 2 months ago, the Nikkei has bounced back 180,042% since.