The Tsunami on the Japanese Nikkei 225 Index

A first sign of the drop had already been given on the day before the earthquake when a new local low and a breach of the 50-day EMA signaled potential weakness ahead (see daily chart above).

The 9 degrees magnitude temblor and the subsequent powerful earthquakes (see table above) followed by the tsunami and the nuclear accident threat developed into a black swan that sent the index towards the crisis lows (see weekly chart below) in the biggest two-day drop since 1987.

The uptrend in the Nikkei Index is technically damaged and the damage is spreading worldwide in a panic wave which may have locked the highs of the main developed markets indexes for some time to come.