Nikkei 225 Index JPN225 Has Lagged - Set Up a Bearish Divergence

FX:JPN225   Nikkei 225 Index
262 10 6
But Will the Nikkei 225             Play Catch-Up to the S&P500             SPY?
Or is this a massive divergence that presages a sharp decline?
Time will tell!

What do you think?

Tim 2:12PM EST Wednesday, August 27, 2014
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Outperform it did!
Then also sharp correction, then 20% rally...talk about outperforming!
Nikkei jumps...
imho, the longer term chart, monthly, looks bullish. The daily you are looking here looks choppy, but I wouldn't short it. fwiw...
timwest JimFred
JimFred, if you read the headline again, you'll see that I suggest the the Nikkei will play "catch-up" to the S&P, which means I'm looking for it to rally... not decline. I show that they are spread apart and that it would make sense that the Nikkei OUTPERFORMS the SPY from here.
JimFred JimFred
oops, my bad... sorry...
I believe that either they will go up together, or they will correct together. There's nothing there to call a fall in Japanese stocks, and all the JPY pairs look bullish.
timwest vlad.adrian
It's interesting that one time the Nikkei jumped to catch up to the SPY and the other time the Nikkei fell by about 4% more. Who knows - it is a divergence. I'll add the ratio graph next to look at that.
timwest timwest
The JPN225/SPY ratio chart looks like there is no pattern that I can discern.
Here's the "Catch Up" example
timwest timwest
See the left side of the chart with the black arrow "UP". That's the catch-up example.
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