Double Top in the Nikkei?

The Nikkei was a huge performer last week, as worldwide equity markets continued to ride the upward momentum. US markets have been making record highs on a daily basis, however, it’s been a slow grind rather than a powerful breakout.

The Nikkei has surged on the back of some Yen weakness. I suspect equities are getting set for a downside correction in the coming weeks. The FOMC rate hikes might be the start of a potential move lower.

On the 240 min chart, it looks like we are trying to test 20500, but have in fact put in a double top. 20420 might be a level to play off for a short, however, be careful when fading the momentum.

Nikkei – 240 min Chart