Japan's Nikkei Index is currently trading just above the 17,000 level as I write this post around 9:00 pm ET Tuesday and is down around 3.3% from yesterday'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 post of January 29th. If it holds, this "island reversal" candle formation on the Daily chart below should produce some "interesting" results!
*UPDATE February 9th:
The above bearish "island reversal" candle formation has been confirmed. After last night's 918.86 point drop, the Nikkei Index now sits just above 16,000, as shown on the following Monthly chart.
Major support sits at 14,000, followed by 12,000.
At the moment (10:05 am ET), the USD/JPY Forex pair is trading at 115.22, as shown on the following Monthly chart.
Major support lies far below at 110.00, followed by 100.00.
The recent extreme moves in both the Nikkei Index and the USD/JPY Forex pair tells me that volatility is not yet over, and, in fact, may have just begun.