Today’s Chart of the Day was shared in a research note by Jeffrey Huge of Alpha Insights. It's a line chart of Japan's Nikkei 225 index going all the way back to 1980. The index closed at a 52-week high today and it's up about 20% YTD. It's amazing that the Nikkei still hasn't recovered from the massive bubble that formed 30-years ago. However, Jeffery thinks the index could test the former highs in the next 1-2 years. He explains: "we believe that the structural upside breakout in the Nikkei 225 positions the index to challenge its 1990 all-time high at some point over the next 12-24 months."Part of his bullish outlook is based on the fact that price is breaking out from a multi-decade base. The index will have gain about 67% from here, in order to reach a new all-time high.
