Nikkei Back Below 9,000 (-3.55%, 8,824), Nikkei Futures Charts (NKY, EWJ, NK_U, NK_Z)

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The brief rally (1, 2) might be over in Japan after the initial Nikkei 9,000 breach on 8/24. The Nikkei blasted through that level again today, closing down 3.6% at 8,824. Anyone know where I can find a chart of the Nikkei Volatility Index ($VXJ)? I bet it was going crazy these past few weeks.

If I were forced to be a perma-Nikkei 225 bull, I'd watch for a downtrend breakout and of course a break above 9,000. Until then, like I said on 8/24, the Nikkei could swim in the 8000's for a bit and perhaps test the 2008/9 lows if Japan double dips. I'm watching to see what happens with the S&P at neckline support. U.S. E-Mini futures are currently unchanged to slightly lower at 5:02/6:02am. Below is the 1-day Nikkei Index move and the September (NKU10), December (NKZ10) Nikkei futures.

Nikkei 225 Index, 8/31/2010 (Bloomberg)


NKU (Nikkei 225 September Index September Future) Daily Chart via OptionsXpress


NKZ (Nikkei 225 Index December Future) Weekly Chart, watch downtrend

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