Anyone who has been watching the Nikkei over the last month has noticed that the Japanese stock market has routinely been selling off throughout the trading day. Â Whether or not the index opens higher or lower, more often than not it is closing well below levels that it has touched during the trading day. Â In fact, over the last twenty trading days (a period going back three days before the index peaked), the Nikkei has closed more than 1% below its intraday high 13 times! Â We haven't seen that type of intraday selling in the Nikkei since the Financial Crisis, and before that, December 2001. Â In the 1990s, there were multiple occurrences where the Nikkei saw this kind of intraday selling, but keep in mind that the 1990s weren't exactly a good period for the Japanese stock market.
Copyright © Bespoke Investment Group
