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The Nikkei 'Pop-And-Drop'

Published 05/24/2013, 02:46 PM

I last wrote about Japan's Nikkei e-mini Futures Index (NDX) on February 8.

Staggering Rally
Since then, price rallied a staggering 4850 points to a high of 16020 (reached earlier this week) and promptly dropped 2020 points as of 12:45 pm EST today (Friday), as shown on the Weekly chart below. You can see that this week's candle is in the midst of forming an enormous outside bar, encompassing the past two weeks. This candle's low of 14000 has hit a confluence zone of several external Fibonacci retracement levels.

Possible Target
A failure to hold 14000 could send price down to the next confluence level at 12600 or lower.

Perhaps this meteoric rise in the NKD is what influenced a similar rise in the SPX, which would possibly answer the query posed in my May-23 post.
The Nikkei: Weekly

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