Brief follow up on my expectations and key levels on the YM.
Chart below shows Dow and Nikkei in comparison.
Dow traded in a range most of yesterday but a close in the lower range of the bracket. Key resistance was 13337 - 13340 and will continue to be a key pivot level. Premarket shows a little resistance right now as well.
Today, Nikkei trended nicely to the upside to recover all the losses from the previous session. Evening session Nikkei is trading above previous day high.
There is a close correlation with the US markets and the Nikkei. On most occasions, the US markets will lead the Nikkei. If Dow, S&P closes positive... Nikkei is likely to gap up the next day and end positive as well.
However, yesterday was a range day with slight weakness. Nikkei gapped down slightly then broke out of its morning range to trend up all throughout the remainder of the day. This inverse relationship makes it interesting.
Todays Asian Markets: Hange Seng +1.61%, TOPIX +0.73%, Singapore +0.91%, Shanghai +2.58%
There is a good chance the Dow will break yesterdays high and move into higher value placement. Key pivot will remain at 13340. My bias is a potential rotation towards 13380's.
However, most importantly will be to see how price reacts at the US open around the 13340 area. (do not want to see prices retrace back below 13300)