Reflecting Back on the Nikkei’s Switch Being Flipped to the “On” Position
On January 11th, when the index stood at 10,800, we had a simple, two sentence post that asked two questions in the context of the resistance the Nikkei was facing in the chart we attached to that post:
“Is line (1) in the chart below relevant to the Nikkei per history?”
“If so, what happens with a sustained break above it, if anything?”
We followed up that original post with this one, suggesting the Nikkei’s switch had been flipped to the “on” position as the index had rallied 13% in two short months after breaking above the resistance from our January 11th post.
We wanted to refresh the chart one more time below – as you can see, the index has rallied 23% since the original post.
All that’s left is line (3) resistance at 14K, which dates back to the 1989 and 2007 highs. After that, there appears to be smooth sailing into the ~16,300 area.
How long will it take to get there?