NIKK Nikkei Index Weekly Chart Record Highs Fueled by BOJ

The NIKK launches like a rocket over the last couple years. The BOJ began bludgeoning the yen early 2013 creating the shock and awe stimulus that sent the yen crumbling lower, dollar/yen catapulting higher and Japan and US stocks rallying higher. The NIKK continues to print new seven-year highs and note that price is nearing the 2007 top which would then send the comp's back to 2000 fourteen years ago. The Nasdaq continues higher in the States and my reach its 5K level from the dotcom bubble days. The world is awash in central banker liquidity. Party on, Garth.

The red rising wedge is a bearish pattern. The red lines clearly show negative divergence across all indicators with the higher highs in price. Over the short term, however, the last two and three months, the thrust higher with the global central banker collusion since mid-October has created strong momentum. The expectation would be for price to stall at these levels and top out during the weeks ahead and roll over. If the NIKK moves lower that means the yen will strengthen and the dollar/yen will retreat from the 121+ level. For such a strong thrust higher, a record-breaking rally over the last two months, it may take December into January to flatten out and roll over.

Note the parabolic move higher in 2013. What does that remind you of? Yes, the chart move mimics the move that is now occurring in the SSEC due to the PBOC money pumping. In other words, the NIKK may be forecasting the path forward for the SSEC. A big thrust higher occurs for the first year (as the central banker money printing machine cranks up) and then the index continues higher for the following year albeit at a slower rate. The power of the central banks is astounding; stock markets pumped higher with easy money. Caligula, the most famous central banker of all, finishes his orgy in Japan and now travels to China to partake in that upside stock orgy. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.