Courtesy of Chris Kimble.
The DAX Index (Germany) remains a big influence of stocks in the states. Below updates this key index and the unique pattern it has formed over the past 6-years and especially the past year.
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The DAX remains inside of its 6-year rising channel, shaded in blue, with line (B) being key support. This support line was hit in February of this year and it held.
Over the past year, the DAX has created a series of lower highs, inside of falling channel (A), shaded in pink.
Support is support and resistance is resistance, until broken.
How the DAX handles resistance line (A) and support line (B), should have a big influence over the S&P and other indices in the states.
The DAX is hanging onto support by a thread, that the Risk On trade does NOT want to see break. If the DAX can break above falling resistance line, very sweet message for being long stocks. If support breaks, it would be the FIRST in 6-years and would suggest selling picks up in the states.
Keep a close eye on the DAX, as it should send really important messages to stocks in the states.
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