Nikkei Index (15404)

The Nikkei has paused above 15000 but I don't expect the quiet period to last long. We have broken above long term downtrending resistance without even flinching, and my unique price momentum models still show an impressive head of steam on the upside.

We are in the second leg of a recovery that began in 2003. If this leg turns out to be proportionate to the first upleg in percentage terms, the index could reach above 17000 before slowing down to make a top.

The Nikkei continues to exceed my expectations on the upside. I'm hoping to catch the next top before it turns down, but it's a wild ride and things are happening quickly.