$NIKKEI Update, the long awaited moment of NIKKEI tagging its post elections upper wick, almost there, now it sits at 70772 yens, by the time the BOJ issues its decision Monday night our time, NIKKEI will have reached that level, see picture.
Geometry shows it is possible the BOJ will hike by 25 bps as it the index will have tagged a double-top on a sloped basis, and a correction will be an on-time situation as the yen strengthens with a hike. This is a setup not a guarantee.
Another factor supporting the setup;
#COR10D recently hit $2.5, a level that marked tops in the past without fail. A top in
$SPY is arriving soon if not here yet, so the $760 maybe it, I outlined a path for a slightly higher top, similar to what the Nikkei is doing tonight.
One thing for sure the dispersion trade is over, and volatility will go up. This idea you run to the bank with.
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