Dax's Next Move Could Be a Sign of Things to Come for S&P 500
Chris Kimble | Jul 07, 2023 21:36
A recent review of global stock market indexes put a major European index on my radar: The German DAX.
The current price pattern for the DAX shows the index nearing a critical price point… and one that could send a broad message to U.S. stock market indexes like the S&P 500.
“The facts, Ma’am. Just the facts.” – Joe Friday
Looking at today’s “monthly” chart of the German DAX, we can see that the trend has been higher for nearly 2 decades. This rising trend channel is marked by each (1).
More recently, the German DAX has rallied to test its 2021 highs at (2). While the DAX is testing its highs, the U.S. stock market is far from its highs.
So what happens next on the DAX should be telling. Will we see a breakout that signals further strength to the global markets? Or will we see double top resistance hold and key markets turn lower?
Joe Friday Just The Facts Ma’am; It appears that what takes place at (2) should highly influence stocks in the states and around the globe!
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