Japan’s Nikkei Index was above the 17,000 level yesterday and it was down around 3.3% from Monday’s close. You can see from the Monthly chart below that this is around the same level just before the 2007/08 crash.

A drop and hold below 17,000 could spell another big plunge in this index and confirms what I mentioned in my previous post. If it holds, this “island reversal” candle formation on the Daily chart below should produce some “interesting” results!