Learn from Germany’s DAX index

[wp_lightbox_prettyPhoto_image link=”http://www.economicsignature.com/wp-content/uploads/2018/03/20180302-Germany-DAX.png” description=”DAX reached its peak on January 23, 2018, one week earlier than Dow Jones index. Then it dipped as a falling knife. It created two gaps, which haven’t been filled yet. When it broke down the 12,850 neck line, the southern run accelerated. After it bounced back to form a flag, this week the German investors dumped the stocks again. Today the DAX index broke down another support 12,000. Next target will be around 11,390.” source=”http://www.economicsignature.com/wp-content/uploads/2018/03/20180302-Germany-DAX.png” title=”Learn from Germany’s DAX index”]

Germany’s blue chip index (DAX) is extremely weak. It may be a leading indicator for the US market.

DAX reached its peak on January 23, 2018, one week earlier than Dow Jones index. Then it dipped as a falling knife. It created two gaps, which haven’t been filled yet and have confirmed the M head. When it broke down the 12,850 neck line, the southern run accelerated. After it bounced back to form a flag, this week the German investors dumped the stocks again. Today the DAX index broke down another support 12,000. Next target will be around 11,390.

Will the US market follow DAX?

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