Wall Street Stabilises: Can Nikkei and ASX Extend Their Bounce?
By Matt Simpson, Market Analyst
Date: 24/06/2026
Market Overview
Wall Street futures have found support after a volatile week, creating a more favorable environment for Asian equities. The ASX 200 and Nikkei are showing early signs of a technical bounce, although they still face key resistance levels that need to be surpassed.
Wall Street Performance
Despite a challenging week for Wall Street indices, the situation is not entirely bleak. The S&P 500 futures found support at the 50-day EMA and the 7,400 level, while the Nasdaq 100 showed a narrower trading range, indicating mixed sentiment. The Dow Jones futures managed a modest gain of 0.4%, trading just below its all-time high. This stabilization could bode well for Asian indices, particularly the ASX 200 and Nikkei, which have already shown bullish price action.
ASX 200 Technical Analysis
The ASX 200 has formed a small bullish inside day above its 200-day SMA, breaking a four-day losing streak. The daily RSI indicates oversold conditions, suggesting a potential for a minor bounce. The pullback from recent highs aligns with a 38.2% Fibonacci retracement level, hinting at a possible larger upward movement as the RSI trends higher without being overbought.
Nikkei 225 Futures Technical Analysis
The Nikkei is currently in a strong uptrend, having rallied 142% since its low in April 2025. Recent momentum suggests a bullish bias, with a Rikshaw man doji indicating potential for further gains. However, resistance is anticipated near the 74,000 level, and a pullback could provide a better entry point for traders looking to capitalize on the uptrend.
Conclusion
As Wall Street stabilizes, the ASX 200 and Nikkei are positioned for potential bounces. Traders should remain vigilant for key resistance levels and consider the implications of upcoming economic data that could influence market movements.