Nikkei 225 Showing Bearish Price Action Signs | Jan 16th
Nikkei 225 – Sold Off 6 of Last 11 Days
After reaching a peak of 16250 to start the year, the Japanese Nikkei 225 index has sold off 6 of the last 11 days. Although that’s only 54% of the days being bearish, the index is down almost 600 points from the highs. This communicates the bears are putting on more selling pressure when in control vs. the bulls. The index also broke below a major SH (Swing High) recently forming a bearish engulfing bar at the at key level.
I’ll look for corrective pullbacks into 15840, or 16250 to get short on weakness. Downside targets would be 15500 and 15050, but we could be seeing the Japanese index starting to roll over as the impulsive selling days are clearly outweighing any bullish closes.
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