This is important- keep a close eye on the Nikkei 225 in the coming days

The Nikkei 225 fell by 5.81% today, as noted here in earlier updates. The index fell by 2,216 points on the session and that is its biggest one-day slide for many years. The index closed today at 35,909. In percentage terms it was the largest daily fall for more than 4 years. The index peaked earlier this year at 42,426 and it has already fallen back from that record high by 15.36%. So, in the course of just one session it has already surpassed a 10% corrective target by a considerable way. Now, if the index was to fall by 20% from that 42,426 record high it would then fall into a bear market. That bear market entry point comes in at 33,940. So, it has not got there yet, but given the more than 2,000 point slide today, it is clearly within striking distance next week, if we see similar moves like that today next week. It is worth noting; the Nikkei futures are lower again right now and currently indicating an opening for Monday, at 35,650. It is important to note the implications of the Nikkei potentially falling into a bear market, when assessing the outlook for European and US stocks