Chart of the day

Where do we stand fundamentally?

NIKKEI gained in the past years as the BOJ Central Bank of Japan is riding on easy money monetary policy, but the policy recently began to change as we had a first rate increase in decades

NIKKEI reached 40600 and it is reversing down from it. This could be a strong reversal down from the fifth long-term upside wave. A confirmed break below strong support 38000 will confirm the end of five waves and I am expecting a test of it.

We are seeing an ongoing test of the mentioned level and a break downside will accelerate the fall. The first target of the downside is channel support of 33000.

_{Look for the short trade entries with a stop loss above 500. I see this as an ending consolidation before a bigger correction within the channel.}