Morning Preview: Double Top in the Nikkei as Equities Slow Down
Rowan Crosby • 1 min read
The markets had a quiet start to the week on Monday with S&P 500 starting to slow down after what has been a massive run-up over the last month. Here at FX Leaders we’ve been talking in depth about the raging bull market and have been taking a close look at other worldwide markets such as the German Dax and Japanese Nikkei. All around it’s fair to say that equities are overvalued and it’s just a matter of when they re likely to crack.
Nikkei Topping Out?
The Japanese market has been incredibly strong, after looking like it was about to crack the lows not all that long ago. In Monday trade it looked like we have put in a bit of a double top.
It’s never easy to pick a top, so what I’m looking for is confirmation of a move lower. The key level for me is 20600. If we can break below that level then there’s the potential for another leg lower.
Nikkei – 240 min Chart.
Key Support and Resistance Levels
Top Economic Data
It’s a quiet day on the data front in terms of top-tier data. The only major announcement for the day is UK Manufacturing Production due out at 8:30 GMT.