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Home | Finance | Stock Market But with so many markets in uncharted territory, it makes it hard for the technical analyst to know just how far a rally might run. Where will the next level of resistance be that results in a significant pull-back? Right now there are still two key markets that are way below their all-time highs. Can we use these to identify likely stalling points for the current stock market bull runs? Let's take a closer look: * NASDAQ 100 (NDX) has rallied from a 2002 low of 794 to near 2030 - but it is still well below its record year 2000 high near 4800. * The Japan market reminds us how very long-term a slide from great heights can be (take note re NASDAQ 100). The NI225 - Nikkei 225 Index - peaked way back in 1989 at 38,957 before sliding for fourteen years to a low of 7604 in 2003. At 18,220 today it is over double the low point, but still less than halfway back to that record high set so many years ago. Beginning with NI225, a quick chart analysis shows the next top is very likely to form in the 19,500 - 21,000 band. It could eventually push higher, but not before a serious pull-back completes. At 23280, it would have retraced 50% of the decline from the 1989 high of 38,957 to the 2003 low of 7604, so this higher level may be a longer-term target, but NI225 should first struggle to break through 21,000. NDX has strong resistance close at hand, near 2080. If it manages to navigate through that, the top of its trading channel sits near 2191. So be prepared for the rally to falter as NI225 approaches 20,000 and/or NDX gains another 50 points to near 2080. Article Source: http://www.articlewheel.com
Murray Nickel is a mathematician, statistician, and professional trend trader. He offers a free trial of trading signals for global market indexes and index ETFs, spot Forex, and spot Gold. He also mentors traders aiming to succeed at trading global markets.
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