Chart of the Day - Monday, May 22, 2023

Today's Chart of the Day was shared by John Roque (@daChartLife). Japan has been ripping higher recently, with the Nikkei closing at a fresh 33-year high today. As you might know, the bubble in Japanese equities that took place in the 1980s was one of the most epic speculative manias in the history of financial markets. The Nikkei peaked in the early 90s, and it still hasn't revisited the peak. John points out that the path of least resistance is higher for the Nikkei as it's breaking out from a 30-month base within a multi-year uptrend. He adds that the MACD (lower pane) has been in positive territory for more than a decade, which it hasn't done since 1981. It's still down -20% from it's peak, and it hasn't broken out in US Dollars terms yet. But at this point, there's very little resistance between current prices and the former highs.