Back in May the Power of the Pattern suggested to short Japan’s Nikkei index due to it hitting a 20-year falling resistance line. The Nikkei declined almost 20% in a couple of weeks, after it hit this line and then hit the 50% Fibonacci support line and bounced back towards resistance.
The rally in the Nikkei index took it back near this 20-year resistance line and might have created an lower double top, similar to its pattern back in 2007, prior to a 60% decline.
Premium Members are attempting to take advantage of this pattern. The 4 minute video (watch video here) discusses this pattern, how the Nikkei has declined 100% of the time it has hit this zone for 20-years and how this pattern looks to be impacting Home Builders and Junk bonds.
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