January 22, 2020

Stock market review January 22, 2020

What do we see in the market?

Nasdaq 100 🇺🇸

Last week, once again, closed at record highs, without the slightest price pullbacks. The market is stronger than ever.

It is at such moments in the market that universal euphoria begins and the risk appetite increases. Not the most appropriate solution is to buy at historically high prices, however, the fundamental background speaks for itself.

Trump managed to negotiate with China and signed phase 1. The Fed creates additional liquidity by pumping stock markets with money. Interest rates at historical lows.

Plus reporting period. Key US GDP companies report better than global analysts expected. The combination of factors provides tremendous support to stock indices.

However, a technical correction will show itself sooner or later. Overpricing is not always a reasonable move.

Nikkei 225 🇯🇵

The overall technical and fundamental picture remains the same. There was nothing significantly new compared to last week on the Japanese Nikkei 225 Index.

In 2018 and 2019, the price against the background of increased volatility fought off current levels down. And while trading is below resistance levels, a downward scenario is still possible. Moreover, the longer the price remains below the mark, the lower is the probability of a breakthrough of this area up.

On the other hand, Japan's economy is closely linked to the United States. Many companies that make up the index turn around precisely in the American markets, which betrays the market correlation.

One way or another, sales look more enticing. The general market sentiment is consolidation.

FTSE 100 🇬🇧

Price consolidation in the area of ​​local maximums of the global flat continues.

Any downward price pullbacks are sharply suppressed by buyers and, possibly, investors decided to break through the key resistance level in this market.

Today the general market sentiment is uncertain. However, at this stage, the dominance of the bulls is visible.