NIKKEI 225 INDEX

16,000 level becomes more important for Japan’s Nikkei 225 index as the benchmark reaches the decade-long trend resistance. In May 2013, Nikkei 225 had a spike and tested the long-term resistance area. Sharp pullback to the 200-day average followed right after the strong rally. Now, the index is trying to reach the same trend resistance.  To be more bullish in this overextended market we should wait for confirmation and this confirmation should come with a decisive break above long-term trend resistance at 16,000 levels. Before that happens we should expect more consolidation between 13,500 and 16,000.