While the Nikkei is on a 3 day uptrend Today's session put the brakes on the ongoing uptrend — after ending today at 27,963, the Nikkei traded in a 27,900 – 28,039 range before settling at 28,000.
Uncertainty around the Nikkei is reflected by published market data as following a previous reading of 1.1, GDP in Japan released yesterday at 23:50 UTC fell short of the 0.3 figure expected by analysts with an actual reading of -0.3. Japan Industrial Production published today at 04:30 UTC came out at -1.7%, falling short of the -1.6% projections and continuing its decline from the previous 3.4% figure. Japan GDP published yesterday at 23:50 UTC came out at -1.2%, falling short of the 1.1% projections and continuing its decline from the previous 4.6% figure.
Technical analysis trend indicators suggest that the Commodity Channel Index (CCI) indicator is above +100, meaning the market price is unusually high compared to the rolling average. Analysis based on the asset volatility indicates that the Nikkei's upper Bollinger Band® is at 28,200, suggesting that a downward move may follow. Technical analysis shows that the Nikkei is climbing away and is now 140.56 points from the 27,850 support line.
Notwithstanding the Nikkei's appreciation in recent days, the technical outlook suggests its bullish run is now fading.
While the Nikkei was pretty flat today, mixed performances were seen elsewhere as notably, Hang Seng rose 4.11% today and closed at 17,620. After ending today's session at 3,993, S&P 500 lost 35.75 points and is trading around 3,957.25.
Data to be released tomorrow might clear up some of the market fog as Japan Trade Balance (Oct) is expected tomorrow at 23:50 UTC. Japan Tertiary Industry Activity Index (MoM) will be released tomorrow at 04:30 UTC. Japan Adjusted Trade Balance scheduled to come out tomorrow at 23:50 UTC.
The index has been trending positively for about a month. Having set a significant high of 29,800 2 months ago, the Nikkei is trading 181,245% lower.