TechnoMeter

The Nikkei 225 remains caught in a quite pervasive downtrend, which has endured since it topped out back on June 12. That peak itself was quiet significant as it came in at 23023, which is just about exactly where the bulls had been routed in their previous assault. That petered out on May 19. Coupled with the latest bull failure it looks as though we might be seeing a double top reversal for the Tokyo stock benchmark, which could well portend further significant losses.



However, the index remains for the moment above 21647. That’s an important level as it represents 50% retracement of the climb up from the lows of late March to those twin recent peaks of 23023. It is also the third key Fibonacci retracement level. The first two have already given way in a two-week period which began on June 19. That day's sharp fall saw the first Fibonacci level of 22378 surrendered on a daily close.

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