Nikkei Index near 21,750, slipping again after the panic rebound

• Nikkei sliding into 21,750 after paring back losses from recent panic selling in equities.
• Tokyo stocks following US futures downwards as market anxiety remains, but distressed selling appears to be over.

Japan's Nikkei 225 leading index is dropping today during Tokyo trading, back down to the 21,750 region as US futures slip lower in anxious markets.

The Nikkei tumbled from multi-year highs recently as equities plunged and bond yields spiked following a brisk round of risk aversion in markets, with traders fleeing into safe haven assets late last week and early this week. Market risk appetite seems to have normalized, seeing the Nikkei bounce from a low of 21,065 back up to 22,370, but is currently sinking again in Asia markets.

Nikkei Technicals

The index is trading very close to swing support at 21,750, with bullish price movements being capped at 21,980, and 22,366 above that. Longer term, the Nikkei will have to clear the latest turning point resting at 22,350, and if that fails, the index could see itself trading back into 21,560 very soon.