Nikkei Tokyo Index (12439)

I had previously noted that this index was making its sixth attempt to penetrate the 12000 level, and I thought it would likely fail again. One word from me and it popped above 12000 resistance as if on cue.

Now it appears to be overbought short term, and I'd like it to build a top here and then sell off. Short term support is in the 11000 area. It might have to struggle to make its way back down through 12000.

As a result of the breakout above 12000, I am moving to a neutral positive stance for the intermediate term. As I see it, we are looking at a grudging intermediate term recovery in a longer term downtrend.