Nikkei Index (14072)

I'm afraid I have unintentionally sent mixed messages on the long term picture for this index, so I will clarify my comments now. On the long term (monthly) chart, we have seen a recent powerful upthrust to approach a downtrending resistance line that has been in place since 1989. Resistance on this downtrending long term trendline currently stands in the area of 14600.

In recent months, the Nikkei has consistently outperformed my short term expectations. None-the-less, the index appears to be overbought on the short term at this time, and I'm looking for a pause or a brief correction before it moves on toward long term resistance in the area of 14600.