Nikkei Index 1989-2018 Review: Mother Of All Elliott Wave Triangles?

It took the Nikkei index along time before it topped but in the last few months a spike has appeared after which the Nikkei has started to decline. The Nikkei has turned very close to the US indices turning dates. Which could be ending on a Primary degree “D” wave bull market.  This also means that the Nikkei could suffer a 3 wave decline resembling another zigzag, but it will be one degree lower.  My bottom big trend line is parallel to the top trend line, with the bottom trend line pointing to new all time record lows for the Nikkei stock exchange.

In a nutshell, the Nikkei could end on the same Cycle degree 4th wave right along with all the other 5 indices I cover.  I did not keep a record of the Gold/Nikkei ratio, but presently we are sitting at a 16.6:1 ratio. It takes 16.6 Troy gold ounces to buy one unit of the Nikkei. This makes it about as expensive as any of the US indices.  I would have to do some back checking to find the cheapest ratios, which I will have to  put on my list. For now we have one ratio and I’m sure it is also hitting a brick ratio wall.

Checking the COT report with the Nikkei I see the commercials are net short by a ratio of 1.7:1, which isn’t all that bad, but the speculators are net long by a ratio of 4:1. The speculators are far more bullish than the commercials are bearish, which puts the speculators into a typical bull trap. A “D” wave bull trap.

The single rising trend line I have may give the Nikkei a pause, for a potentially strong counter rally.

Hits: 1