Courtesy of Chris Kimble.
Global Leadership is facing an important test of support today!
The German stock market (DAX) has led the broad markets in the states, to the up and downside the past couple of years. Below looks at the pattern in the DAX, including the wild action overnight.
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This important stock index yesterday closed at falling resistance (1) yesterday. One day later, the DAX is testing rising support at (2). We humbly remain of the opinion that portfolio construction will be greatly impacted by what the DAX does at 6-year rising support. If support does not hold, the “Risk On” trade could be in big trouble.
Joe Friday shared two weeks ago today, that the Nasdaq 100 could be creating a “Head & Shoulders” topping pattern.
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This chart reflects that tech stocks could be creating an important “topping pattern” (head & shoulders pattern) just below the highs that took place back in 2000. If the NDX would break the neckline of this topping pattern, tech stocks could see a good deal of selling come forward.
Just the Facts; Selling overnight has driven the DAX down to 6-year rising support. At this time, support is support until broken.
If 6-year support gives way, the world should see selling pressure we haven’t seen since 2007. Full Disclosure- Premium Members came into today, with a double short position in the Nasdaq 100.
Full Disclosure- Premium Members are double short the Nasdaq 100 at this time, due to the potential Head & Shoulders topping pattern and NOTHING to do with the Brexit vote!
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