The 26,632 yen on March 16 (Thursday) is highly likely to be at the bottom of Higan.
The March 16 low of 26,632 yen is likely to be a near-term bottom, and could become the March equinox bottom.
The anomaly (rule of thumb) of the Japanese stock market is the March equinox bottom. In 2020 during the COVID-19 shock and in February 2022 during Russia's invasion of Ukraine, there was a sharp drop in March and a low reached. If this pattern holds, the 26,632 yen on the 16th may be the near-term bottom.
However, as a result of rapid interest-rate hikes by the Federal Reserve to curb inflation as a measure against the rapid tightening of monetary policy in the short term, financial instability is currently arising, and the U.S. government and the Fed are taking swift measures in response, while maintaining a stance to suppress inflation.
For the time being, things are calm, but financial system instability tends to propagate, so vigilance about the outlook cannot be relaxed.
When the stock market calms down, it tends to rebound with some buyback activity.
The Nikkei Stock Average, with the new fiscal year starting in April, will approach a time when it is likely to rise up to early May, as the Mayaki summit in Hiroshima is anticipated in early May.
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