NIKKEI – Monthly Update
Those who followed our June Nikkei call are sitting on 8%+ gains. Now we review the targets. This Monthly Update reads the tape—candles, momentum, and wave structure—to map the levels that matter, the timing windows in play, and the probabilities for the next leg. If you plan to stay early—not the liquidity—start here.
Candles
NIKKEI finished August with solid bullish signals across the monthly and larger frames, setting up for continued upside. As discussed in June, I expected strength to persist through the second half of the year—an outlook that remains intact.
CLASSICAL PATTERNS
Bullish Flag
No change to the large flag or IHS targets. The index has just completed a smaller flag; its targets have been added to the IHS charts.
Inverse Head & Shoulders
Both bullish patterns project roughly the same target for their ideal moves. A timing projection suggests there’s an option for this rally—potentially gaining 16–18%—to complete before the end of the year.
SUMMARY
After a robust first-half close, the Nikkei extended its advance through July–August and shows no sign of a reversal. The Flag and IHS targets remain intact.
If Japan is setting up for a sustained run, it becomes an important reference for U.S. markets. Historically, a strong Nikkei often coincides with continued strength in major U.S. indices; if that playbook holds, the S&P 500, Nasdaq, and Dow are positioned to carry their bullish trends well into the remainder of the year.
Happy Trading!
