Nikkei, daily
The Nikkei is up an almost disturbing 25% since the start of the year. So, err...confirmation of Q4 GDP -2.5% was good news huh? I'm not sure what to think as we are coming up to last summers high. You can see clearly how last July we put in a top, then a lower high, before the dive bomb - along with all world indexes, into early August.
Nikkei - Monthly, a breakout?
Japanese stocks are of course still some 65% lower than a few decades ago, but we do have what appears to be a bull flag on the monthly cycle. We'll need April and May to show good follow through to the upside to confirm this.
11k doesn't seem too far away, and would be the first soft confirmation of 'bigger things to come'. 12,000 would be one major wall to break over though. Can we get another 20% across the spring and by late summer? Japan remains one of the indexes I am keeping a close eye on. Further up moves in the Asian indexes would certainly help the bullish case for SP'1550 later this year.
Oyasuminasai !