Updated: Nov 30, 2021

The Nikkei 225 is less a securities index than it is a measure of how much intervention the Bank of Japan feels like throwing its way. It’s what the Dow aspires to be when it grows up.

So, it’s only at times like this that I bother to post it anymore.

continued for members…

As the chart above shows, NKD is backtesting a TL off the Feb 16, 2021 highs. This could be all we get, as the BoJ dislikes anything smelling like a correction.

Consider how many times it almost backtested the red 1.272 before popping higher.

If it should ever actually reach it and not bounce, the yellow 1.618 at 25,395 stands ready to help. It would mean a drop through the white midline, so I don’t put a huge amount of faith in it. If things get that bad, then the next real support would be the Dec 2019 highs at 24,140.

It would almost certainly require a significant breakdown in USDJPY.

GLTA