Chart of the Day - Tuesday, November 19th, 2019

Today’s Chart of the Day was shared on Twitter by Wolfe Research @WolfeDailyHowl. It's a chart of Japan's Nikkei 225 index going back over 100 years. Wolfe Research points out that the index is breaking out of a massive 28-year base. Typically, the longer the sideways consolidation, the more potential upside. In other words: "the bigger the base the higher in space." As you can see on the chart, major rallies in the Nikkei 225 have often followed breakouts from long-term bases, so if this one resolves higher that would suggest a new long-term uptrend has begun.