
The Jap225 index on the H4 time frame was in bullish territory from the beginning of May. However, bears did try to challenge their reign a few times but to no avail. This changed on 23 May when a last higher top formed at 31348. The bears got enough backing to start a shift in the market momentum.
A closer look at the Momentum Oscillator reveals a negative divergence between points “a” and “b” when comparing the tops at 30955 and 31348. This could have alerted technical traders that the bulls might be running out of steam.