Tuesday, June 5, 2012

DAX question answered!

The DAX has now reached the FLAG target outlined in this prior post and today seems to be "eager" to head to the Head and shoulder targets at 5875/5850.  It would not be surprising to see overshoot especially the US markets open weaker today.

Interestingly Spain's IBEX has outperformed the last couple of days; finishing in positive territory whilst Germany's DAX and the US's DOW finished very weak.  The FTSE also showed relative strength on Friday but the market has been closed Monday and Tuesday (GSTQ!!) so will be interesting to see the open tomorrow.

Also interesting is SENTIMENT.  Now we are trading 10%+ lower from the recent highs, everybody wants to SELL!!  As usual the "crowd" will be right for a short time, and then get KILLED. It seems that we may be between "ENOUGH is enough, I'm selling and will never touch stocks again" and "See what did I tell you?"

Still looking to buy at the lower levels..accumulate position.

DAX 3 hr chart

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