If you have been investing for 35 years, you likely remember the fervor heading into the Japanese Nikkei stock market index peak. And most investors of any age likely have viewed charts and read about it.
Why? Because there was a bullish mania to buy Japanese stocks and its peak in 1989 turned into a massive decline that lasted years.
And 35 years later, the Nikkei is just now testing its highs. Note that we first highlighted this stock market phenomena and price resistance back in mid-October.
Looking at today’s long-term monthly chart, it appears that it is worthwhile to keep a close eye on the Nikkei index.
Not to many times do you see an index test a prior high, nearly 35-years later. So that could/should provide some sort of resistance.
Japanese stock bulls hope we don’t see a double top pattern here. Stay tuned.