The Nikkei was down nearly 3% last night. On a monthly chart it's not really much of anything, but if it is a signal that the Japanese public, and possibly pension funds, are growing tired of Abenomics it could be the first sign of trouble if investor appetite there were to lessen.
The current narrative is that the Japanese are putting their money into the Nikkei to fight capital depreciation due to the weakening yen. But this ignores the possibility of rampant distrust creeping in that could make them put their money in the mattress instead.
Also the Nikkei was featured as a buy the other day by a friendly broker on CNBC's Fast Money Halftime Report, so it's got that going for it.
The S&P got into the 2nd level of Fibonacci confluence yesterday after breaking the first one. This area is from 1929.28-1940.99.
The S&P may be close to a short term buy. I would feel better about it with one more flush.
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