Dow and Nikkei side by side

 A happy new year to everyone, although I feel that I am the only one in this blog, but still just in case.

I am doing my home work and for a change, I have placed both Nikkei and Dow side by side. 

Fig 1. Nikkei Dow Jones weekly chart side by side

It is interesting to note how Nikkei and Dow conform to each other move since April 2020, that was until Febuary 2021 where Nikkei went into a correction phase while Dow continued to climb. This was probably because The US government continued to pump money into the country through as form of Covid-19 subsidies while Japan was more stringent in its spending. 

Personally, I do not like this form of  "subsidies", it is an alternate form of bribe to the people and more like a quick fix instead of being a long term solution. Governments using this strategy are normally incompetence in its management of the country. The result is having more people being dependent on handout, becoming complacence and demand for more.  

For the time being, the climb of Dow Jones is stronger than Nikkei, evidence from the gradient of the 55-week moving average, Nikkei one the other hand is more gradual.

Further more, Dow Jones managed to climb higher by the end of 2021 while Nikkei apparently  in a congestion bad. I consider both indices may part their ways in the near future, at least temporarily. 

Placing Projection measurement, I am looking at a down trend on Nikkei bounced from 27.650 level but did not gain much momentum up-ward, instead it is in a congestion with bars overlapping each other. Once it break the 55-week moving average, the next support level will be between 27,191 and 27,214.

Dow Jones on the other hand may still have some where to go after breaking the previous high of 36.564. The next level of resistance will be between 37,035 to 37,885.

In the longer term however, I am seeing divergence in Dow's MACD. As such we will still need to prepare for a reversal for Dow.