Update on NKD: Jul 14, 2017

In our last update on the Nikkei [see: Mar 23 Update] with NKD at 19190, we called for a 3% drop to support at 18631 and a subsequent 9% rise to 20286.

As it turned out, the drop was a little deeper than expected. But, the subsequent rebound nailed our upside target, reaching 20320 on Jun 20 and making a series of lower highs and lower lows since then.

For years, I have found the Nikkei to be a great indicator of the extent to which central banks (in this case, the BoJ) will go to manage stock prices. It continues to offer very strong signals about what to expect, next, from equities in general.