Japan's Small Cap Div Index (DFJ)

This Japanese ETF carries a 1.6% div priced at 41.60. It plunged 23% and rallied back 16% since the Quake/Tsunami hit Japan. More than 2/3rds of the losses have been recouped since Tuesday's low last week as investors “look through” the disaster to hit Japan since the US dropped atomic bombs over Hiroshima and Nagasaki back in August 1945. The buying interest in Japan's ETF's last week is premised on the silver-lining related to the reconstruction efforts that will eventually follow. I don't doubt for a minute that these investors will be proven right in the long run. Short term, however, these funds will face overhead resistance. This DJF fund in particular will face resistance at 43-44, 4-6% above Friday's close, where the one month and quarterly moving averages will be bearishly sloping into the Sept 09 and April 2010 highs and bear close gaps created by the Tsunami. Initial support will be found at the Nov 16 low and bull gap low at 39.4 and the Bull close gap and Feb 16 low at 37.9, 5% and 9% below Friday's close.