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Nikkei Downtrend (1982-Present)
Posted By Barry Ritholtz On May 24, 2013 @ 12:30 pm In ETFs,Investing,Technical Analysis | Comments Disabled
click for ginormous chart
Source: Kimble Charting 
Awesome chart from Chris Kimble  showing the Nikkei going back to 1982 — in particular, the downtrend that began in 1989 and still persists to this day.
Chris notes that Declines of 32% to 60% taken place at this level for the past 20 years!
One would normally expect a pullback and consolidation after a long move up to a major trendline, and under pre-Abenomics stimulus, that would be my highest probability outcome (pre-stimulus, I have no idea!).
The key here is if and when the Nikkei breaks through that trendline, it is likely the beginning of a longer term multi-year breakout. This is why we put on Japan exposure for clients much earlier this year.
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URL to article: http://www.ritholtz.com/blog/2013/05/nikkei-downtrend-1982-present/
URLs in this post:
 Image: http://www.ritholtz.com/blog/wp-content/uploads/2013/05/Nikkei-20-years.jpg
 Kimble Charting: http://blog.kimblechartingsolutions.com/
 Chris Kimble: http://stocktwits.com/message/13758463
 GAL: https://www.spdrs.com/product/fund.seam?ticker=GAL
 DXJ: http://www.wisdomtree.com/etfs/fund-details.aspx?etfid=18
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