Nikkei Volatility: Buckle Up, Plenty More Where That Came From

Hickey and Walters (Bespoke) submit: Overnight, the Nikkei rose 3% and regained some of its lost ground from Friday's 5.4% decline. We looked back at prior occurrences where the index fell over 3% on one day, and then rose more than 3% the next. Since 1970, there have been 15 other occurrences. Over the next week, the index's average return is -0.48% vs. +0.14% for the entire period.

Not only is the next week typically weaker than average, but it is also more volatile. The average absolute value of the weekly returns listed below is 3.0%