Elliott Wave Analysis of Nikkei 225 - S/H/S bottom points to 34,090

Elliott Wave Analysis of Nikkei 225 - S/H/S bottom points to 34,090

The Nikkei 225 has been in an impulsive rally since the early March 2009 low at 6,971. We are now in the final wave 5 higher and the huge S/H/S bottom points higher towards 34,090, while the pict fork sees resistance near 29,860. 

The cycles all bottoms ultimo January so the risk of a short, but powerful decline is clearly possible. However I think it's more likely that we move into the next cycle still heading higher towards 29,860 and maybe even closer to the S/H/S target at 34,090 before a larger correction starts to unfold. 

That said, we need to keep an eye on support at 26,969 as a break below here, will be an indication that wave 5 has completed and a larger correction of the entire rally from March 2009 to the current highs is beginning. 

Remember the trend and patience are your friends