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Japan's Nikkei 225: Big Sell-Off, Right on Cue

by Editorial Staff
Updated: May 13, 2021

Global stocks often move together, albeit with some delay. So, when Japan's stocks fell after Wall Street's big recent wipe-out, it wasn't that big of a surprise, from the mainstream perspective.

Except that... global stocks don't always move in sync. So, what really pushed the Nikkei down?

There's a solid Elliott wave answer to this question. See it now in this excerpt from our Asian-Pacific Short Term Update.

You'll also see what the waves show for the Nikkei next.

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The forecast you're about to see was posted for subscribers on the morning of Wednesday, May 12 -- before the Asian-Pacific markets opened with a big sell-off.

Here's why our Asian-Pacific Short Term Update editor, Chris Carolan, said the Nikkei 225 Index was likely to fall:


Nikkei 225 Daily Chart 1

Nikkei 225 Daily Chart 2

[Japan -- Nikkei 225 Index]
The Nikkei closed sharply lower today (May 11). Recent weakness in dollar yen is now reflected in the Nikkei's fresh decline. The revised Elliott wave counts show Minute wave iv still in progress with wave (b) of iv and completed triangle. This decline may carry to the 27,500 level in coming sessions. The weekly chart shows this Minute wave iv is not too large compared to wave ii, so there is room for additional corrective decline.


Following this bearish forecast, this is where the Nikkei 225 closed on May 13:

Nikkei 225 Index

 

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