Tuesday, January 19, 2010
The Nikkei has behaved as it was supposed to be compared to other indices but we have to give credit to the scenario that the overvalued yen left almost no margin for anything more. Nikkei even made the correction of 10% during Q4 which the US markets refused to do as their manipulators were not smart enough to let people get more short. Anyway we have completed the weekly counts and turned down already and that is what we will see the next 2 weeks increasing intermarket divergence. The almost exact 38% retracement does confirm that a top is at hand it may take another 1-2 weeks before more downside momentum will build up as COMP and VIX need to climb a little higher respectively lower but that might be accomplished already this week.
Posted by getagrip at 9:56 AM