CME Nikkei 225 futures are taking a dive...

Hi everyone, here is the CME Nikkei 225 (Globex) futures chart.

Today's Nikkei 225 Index advance has almost been sliced in half while the Nikkei futures have continued to negatively diverge from the Nikkei 225 index since the start of trading.

IMHO, the Nikkei 225 index is headed toward 7000 at a minimum. The Nikkei 225 PnF chart bearish price objective for the Nikkei 225 index is 5800!

The CME Nikkei 225 futures are curently down 150 points.

Cheers,

Bob-C

Hi everyone, the NYM11 Nikkei Futures contract for June 2011 is curently down 135 and IMHO, headed much lower.

Cheers,

Bob-C

Edited by Bob-C, 15 March 2011 - 10:45 PM.

Hi everyone, the NYM11 Nikkei Futures contract for June 2011 is curently down 135 and IMHO, headed much lower.

Cheers,

Bob-C

NO bob-c, Just wanted to highlight since i just read it NEVER SHORT a divergent futures market for nikkei it's different from other markets
When they trade negative to the cash means there are too many bears on board.

Hi everyone, the NYM11 Nikkei Futures contract for June 2011 is curently down 135 and IMHO, headed much lower.

Cheers,

Bob-C

NO bob-c, Just wanted to highlight since i just read it NEVER SHORT a divergent futures market for nikkei it's different from other markets
When they trade negative to the cash means there are too many bears on board.

Hi Porsche911sg, thank you for your comments and observations. All markets worldwide operate using accumulation, distribution, short-selling and finally re-accumulation, this includes worldwide futures markets. The PTB dumped out, aka distributed the Nikkei 225 futures contracts that they took in at the previous day's lows and then sold-short Nikkei 225 futures contracts in preparation for the ensuing Nikkei 225 decline where they covered their short sales profitibably at the session lows. The PTB short-sold their Nikkei-225 futures contracts to nervous worldwide traders who were caught on the short side and who scrambled to buy back and cover their Nikkei 225 futures contracts short sales. The PTB after selling, aka distributing, their Nikkei 225 futures contracts were able to then buy Nikkei 225 futures contracts which were at a discount to the cash contracts. It was the selling of the cash contracts by the PTB that dropped the Nikkei 225 index from its intraday high.

IMHO, the Nikkei is headed far lower in the VST; the Point and Figure chart bearish price objective for the Nikkei is 5800! LOB!

Cheers,

Bob-C-C

Hi everyone, here is the $NIKK Point & Figure chart indicating a bearish price objective of 5800 for the Nikkei 225 index:

Cheers,

Bob-C