by Greg Harmon
The Japanese stock market ($NKY) has been front and center in the world economic news. And it has been competing with the US market ($SPX) for dominance. Abe-nomics pushed things around and gave a nice correction in the back half of May into the first half of June, but from the ratio chart below it is clear that pull back in relative strength has ended. Technically it fits the story very well. After completing a bearish Shark, it pulled back 50% of the range. From there a
Tweezers Bottom on the 200 week Simple Moving Average (SMA) started a bounce higher that is gaining strength. The 3 Advancing White Soldiers pattern signals continued movement higher and the AB=CD pattern suggests a move as high as 11.37. Both the Relative Strength Index (RSI) and the Moving Average COnvergence Divergence indicator (MACD) support more upside as well.
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