Tuesday, October 20, 2009

Want to know where our stock market is going? Watch the Nikkei!

I thought I would take a look at where the Nikkei stock market Index was currently and specifically how the long term chart looks compared to the current wedge pattern we are in and waiting for a breakout either to the upside or downside. What I found in the chart was most intriguing. As you look at the similarities from the Dow chart, you will see the similarities are uncanny. But more importantly, there is a clue as to where the Dow may be headed. It may break below the support level line, just as the Nikkei has recently! You may need to click on each chart and enlarge them to see what I am talking about, but it is worth the look.

The Nikkei chart suggests we will not break out to the upside but may well drop shortly and break the Dow's support line.

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Blogger Minneloushe said...

Charles, thanks for posting your thoughts. I read them, although I don't always comment.

5:07 AM  

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