Charting Japan: Watch Out Below...

07/08/08 10:46AM EDT
I discussed the risks associated with the notion of buying perceived "value" in Japan yesterday, so I won't rehash my concerns, but I will revisit the chart of the Nikkei. Japan closed down another -2.5% overnight at 13,033.

There is no downside support for a central bank that devalues their currency at every hint of local economic fragility (sound familiar?). With a recent technical breakdown and renewed fundamental frustrations, the March lows of sub 12,000 in the Nikkei Index are now in play.

It is global this time, indeed.
KM

(chart courtesy of stockcharts.com)
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