Wednesday, October 19, 2011

Nikkei Looks Ugly, Already Below Long-Term Support

I was going to post the chart for Shanghai Composite, which sits right on the support (may be breaking as of now today), then I found a chart that's worse: Japan's Nikkei.

3-year support was around 9,000, or about 50% Fib retracement. It's breached, and the effort to regain that support line hasn't gone anywhere. Now on the weekly chart, it is forming a bear flag.

The first target would be the March low of 8,227, then the full retracement back to October 2008 low of 6,994.