As global risk sentiments turned sour, Nikkei closed down -2.49%, or 699.50 pts, today, to close at 27448.01. The development is now more bearish with medium term channel support firmly taken out. We’re now seeing price action from 30714.52 as correcting the whole up trend from 16358.19.
With that in mind, near term outlook will now stay bearish as long as 28419.84 support turned resistance holds. The correction could extend to 38.2% retracement of 16358.19 to 30714.52 at 25230.40 before completion. We’d see if other global stocks would move in tandem.