Market Position Nikkei225 Index – Super Long Term November 2008
The Nikkei225 Index is turning every 4 years, spot on in the month expected. As you can see from this chart, the Nikkei is now further sliding down into a 19 years low end of december 2008. Price levels are still well below the 21 month simple moving average. The low to be formed at the end of december could be the long expected turn for the Nikkei 225. The 19 years cycle is a metonic cycle, known not to invert itself, hence: the market(cycle) will thus repeat directly, and start a new cycle.
Target date: 29 dec 2008 - We expect an Elliott wave 5 of a large degree to complete by that time. Note that in June 2009 a double test of the lows could occur, like in 2003, meaning the new cycle(upwards) could start as late as june 2009. Expect the price will need to return just a fraction lower than the lows in the 1980′s just before the maniac price surge started on this index.
Price target: anywhere between 3371 and 7557.
Please note: “Time is more important than price”.
This does not look good for the other Indices as well. There is quite some correlation between indices. They all belong to same family.
Take care in your trading.
Note webmaster(december 18th 2008): Time is running out this scenario is likely to occur. The probabilities are high the Nikkei 225 Index will continue it’s downtrend after the new year, possibly until 240 month after the start of this bearmarket. Keep watching this blog, we will post an alternative scenario soon.
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