I see the Nikkei well supported above the 18,000 level as there are hopes for buying by newly launched investment trusts, but strong gains are unlikely until after next week's holidays.
The market was short of upward momentum owing to a dearth of strong fund inflows from overseas investors.
The market may rebound. Commodities companies and stocks with strong earnings may lead gains.
The market is on a strong footing as more investors return after the holiday week and those who made profits in recent trading are reinvesting their cash into stocks.
A stronger dollar gives investors the confidence to bet on stocks. I'm expecting a broad rally as investors anticipate more gains in stocks next year.