The Nikkei has been on an absolute tear over the last week or so. From the lows around 19300,  we’ve have rocketed higher and are now sitting in a nice little range, well above the all important 20000 mark.

From a longer term perspective I’m looking for stocks to start to sell off. US equities in particular are severely overbought and are due for some weakness. It seems like every second day that make a low grinding, record high. However that is always with low volatility and very little follow through.

To me that’s the sign that we’re getting near a top. Ad it’s the same in the Nikkei. So for today’s Asian session I’m looking to trade the range between 20300 and 20420. If we can get either of those levels I’ll be looking to make some short term scalps.

Longer term as I mentioned I’m looking for weakness and 20420 is a nice level to play off.

Nikkei – 240 min Chart