- Having trouble closing above the June 18th high (Where the Fed brought forward their view on when rates would be hiked)
- Also running into resistance of the broken uptrend line that supported the rally from June.
- 15,000 is a key psychological level that will need a convincing break and close above.
- Negative divergence on the MACD also contributing to the recent weakness.
- If we move lower into the 13,800/200 range we could see a H&S set up.
- In regards to near-term risk events, the Chinese national peoples congress will convene on March 5th where the Chinese leaders will set out their GDP and CPI targets for 2014 alongside new policy measures.
- April 1st sees Japan hike their consumption tax rate from 5% to 8%, there have been expectations of front loaded consumer demand before this data, also expectations that the BoJ will add to their QQE program in May to offset the effects of the tax hike.
- Looks like NKY will need a catalyst to push it higher and that could be China or the tax hike/BOJ.
- Short from now.
- Also running into resistance of the broken uptrend line that supported the rally from June.
- 15,000 is a key psychological level that will need a convincing break and close above.
- Negative divergence on the MACD also contributing to the recent weakness.
- If we move lower into the 13,800/200 range we could see a H&S set up.
- In regards to near-term risk events, the Chinese national peoples congress will convene on March 5th where the Chinese leaders will set out their GDP and CPI targets for 2014 alongside new policy measures.
- April 1st sees Japan hike their consumption tax rate from 5% to 8%, there have been expectations of front loaded consumer demand before this data, also expectations that the BoJ will add to their QQE program in May to offset the effects of the tax hike.
- Looks like NKY will need a catalyst to push it higher and that could be China or the tax hike/BOJ.
- Short from now.