Nikkei 225 (11787) : Intermediate trend : Bearish
The weakest market in the world, as far as large economies are concerned. Nikkei has made a top at 18300 on 26th Feb 07, i.e. more than 12 months back. Since then it is falling slowing but decisively. Time wise it is full 7 months ahead of Dow, which has topped only in the month of Oct 07.
While concluding a 13 years bear market (Since 1990-2003), the Nikkei made a low of 7603 in Apr 03. Subsequently it has climbed to the recent high of 18300 (Feb 07) and started its decline. Yesterday, it has made a low of 11691, which is exactly on 0.618% retracement of the entire rise from Apr 03 to Feb 07.
Technically, 0.618 is the “golden” ratio, and if the fall is arrested, in couple of weeks, near about 11400-600 levels, we may see a revival, at least for the time being, in one of the weakest market in the world.
