The Nikkei has Jumped, But Should We Look to Sell?

Last week I spoke about how the key support level at 19300 continued to hold up. It’s an area that has been really strong for a number of weeks.

However we are now tightly poised in the Nikkei. The 200 day SMA is now hovering around 19400. As it stands we’ve gapped up into that vicinity and it will be interesting to see if we can start to climb higher. What worries me is that the overall weakness is not just in Asian markets but also in the US.

At this point I’m looking to short any pop up to 19550 and buy below 19300, which is the approximate range that we’ve been in for a few days now.