Nikkei Forecast October 3, 2014, Technical Analysis

The Nikkei surprised us during the session on Thursday and gapped at the open and below the ¥16,000 level. There is still a significant amount of noise below though, so we feel that it’s only a matter of time before the buyers step back in as the Bank of Japan will certainly take steps to support the us stock market. However, we have no interest in going long at this point, because we do not have the proper candle set up. As far selling is concerned, it’s probably a bit difficult to do as well. Because of this, we will be on the sidelines in the short-term.