And, now it's coming to a critical "make or break" level.
While it's unknown whether the Yen has got enough left in it to break out, the Nikkei had already had its "breakout party".
So, TechMan, what's all that got to do with anything?
The Yen and therefore the Nikkei historically have had a positive correlation with the U.S. market. While the Nikkei has already broken out, the Yen has not. And, that is a non-confirmation. It either gets confirmed or reversed.
More importantly, for a day trader like me anyway, so many things are lining up, in historical and contemporary proportions, for an imminent big move rather than the continuation of low volatility grind.
Incidentally, it'll be interesting to see how Shanghai and Shenzhen, and subsequently the rest of the world, respond to the PBOC announcement tonight.
Early trading indicates "risk-on" as Chinese central bank (PBOC) announced an earlier than expected easing by cutting bank reserve ratio by 50 bp.
Edited by TechMan, 19 February 2012 - 05:11 PM.