In our most recent update last week, we noted that NKD was approaching key support at its SMA200 and rising channel bottom.  It was an important line in the sand that, surprisingly, didn’t hold.

continued for members…Since it broke down, NKD is approaching the next level of support: the confluence of its SMA50 and SMA100.  As the USDJPY approaches its own SMA200 at 121.57, it suggests 19000 will hold.  If it doesn’t, this is a bearish sign for SPX, too.

Note the fairly well-formed falling wedge.