Nikkei Update

It's starting to look grim for the Nikkei, which closed today at a 15 month low of 8,995. The 50x3 (end of day) chart shows a clear breakdown in previous support, a decisive double bottom sell signal and a new activated downside target of 8,300. I don't have any obvious upside targets at this time and would suggest risk is firmly to the downside.

The 100x3 closing chart shows a similar picture. It can be seen that the market had support previously at 9,100 but this has now broken down. It would be better to see some follow through here, as at 9,000 we are only one box below this 9,100 level and could creep back above it. That said, the 50x3 chart above suggests otherwise. The long term bearish resistance line is firmly in place with a shorter term resistance lines overhead.