Nikkei 225 slightly overheated 01.09.2021
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Nikkei slightly overheated
New month, new "overheated" alert! From my point of view, the Nikkei 225 looks slightly overheated after breaking out from lower levels.
Nikkei 225 Market Breadth and Envelopes
The price touched the envelopes and almost reached the border of the upper band. The last time the Nikkei 225 crossed the upper Envelopes band was in February 2021. Since then, every time it touched the upper band, it bounced back one trading day later.
The Advance decline Line did not rise above the last high, which is some kind of divergence.
The McClellan Oscillator for Nikkei 225 reached the highest level since mid August and the McClellan Summation Index for Nikkei 225 just touched the value 30 line.
From a technical point of view, this index is now looking stronger than during the last weeks. It will be interesting to see if the break out will continue.
PS: The Nikkei 225 closed above the SMA 200 today. It was closing above the SMA 20 two trading days ago.
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