Is Germany About To Send A Bearish Message To The States?
Chris Kimble | Dec 02, 2019 01:35PM ET
Is Germany about to send a very important price message to stocks in the states? The pattern above suggests it is.
This chart looks at the DAX index from Germany over the past 7 years.
As mentioned in the chart, the DAX has spent the majority of the past 3 years inside of channel (1). It created the top of this channel as it was double topping in late 2017/early 2018.
The rally over the past year has the DAX testing the top of the channel at (2).
In my humble opinion, DAX is about to send an important message to stocks in the states.
If the DAX peaks at the top of this channel and starts turning weak, it will send a negative message to stocks in the states.
If the DAX breaks above this channel and the 2017 highs, it would telegraph an encouraging message to stocks in the states.
Investors in Germany, Europe and the States should keep a very close eye on what the DAX does over the next few weeks.
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