Courtesy of Chris Kimble.
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DAX Index (Germany) continues its global leadership role.
DAX remains inside of its 5-year rising channel (A). Top of the channel was hit over a year ago. After hitting the top of the channel, the DAX has continued to make a series of lower highs and lower lows, inside of falling channel (B).
Last week the DAX created a small bullish reversal pattern (bullish wick), close to rising support line (A) at (1).
DAX has started off the week with a strong rally at (2), which is impacting stock indices in the states early this morning at (2).
The next big move by the broad markets in the states, most likely will be influenced by the DAX. If the DAX can break above falling resistance line (B), most likely the S&P 500 will follow. If sellers step forward and break rising support (A), it could well drag stocks down with it in the states.
The DAX remains caught between important rising support and falling resistance. What it does with these two, will likely impact the S&P 500 between now and the end of the year!
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