Can the Bulls Drive the NIKKEI to New Highs?

The market has now reached the crucial 78.6% retracement of the recent decline, sitting right at the top of the resistance zone. This is essentially the last stand for the bearish 1-2 setup in the white scenario to take shape. If the market pushes beyond this point, the yellow extended (b)-wave scenario will likely take the reins. In this case, we could see the market pushing to new highs, as B-waves are notorious for overshooting. So far, there's no clear indication that the upward momentum has faded, meaning this is the moment where the bears must step in to keep the white scenario in play. Meanwhile, under the yellow scenario, it's even possible that wave (c) of (b) is already in motion. Should the market decisively break above the 78.6% retracement, this scenario would become increasingly likely.