The JP 225 index (cash) has been experiencing a downside correction after posting a new record high of 34,006 in mid-June. Even though the price managed to halt its retreat and recoup minor losses, its structure of lower highs and lower lows remains intact.

The momentum indicators currently suggest that bullish forces are slowly picking up. Specifically, the stochastic oscillator is ascending after posting a bullish cross in the oversold zone, while the RSI gained some ground but holds below its 50-neutral mark.

If the recent bounce extends, the bulls could aim at the August resistance of 32,830. Jumping above that zone, the price may ascend towards 32,830 or higher to challenge the July peak of 33,830. A break above the latter could set the stage for the all-time high of 34,006.

Alternatively, should the bearish structure extend, the recent support of 31,250 might curb initial declines. Sliding beneath that floor, the index could face the May support of 30,400. Even lower, two previous resistance levels at 29,350 and 28,720 could provide downside protection in the future.

In brief, the JP 225 index has been undergoing a pullback from its recent record peak. For that bearish structure to break, the price needs to cross above the downward sloping trendline that connects its recent lower highs.