The DOW is most important now with the clearest chart formation. A Head & Shoulder formation is close to break the neckline on down side taking all other indexes with it. Week May 1 could be a start for a big correction if DOW breaks the neckline. Could come from Monday.
DAX looks vulnerable for downside since the daily 50 MA has turned down and will stay down for several weeks. Since all indexes will go together as usual next week can start a big correction on downside. The monthly trend 8 MA is steadily up but a break below that line is a strong warning signal. However we are now in the summer and activity use to slow down. Stocks are only bought because there is no where else to put money. Stock "stock picking" funds loose customers all over the world to index funds which are cheaper and has had better results than many hedge funds. Since lots of money come into index funds they must immediately buy the index shares.
Greek and Iran is coming up soon and the US 10 year yield is hesitating to get below 2,10 percent. The Euro is in a break situation at 1.09 on up or downside. Small marginals for all financial charts. Commodities and bonds are too risky.
DAX looks vulnerable for downside since the daily 50 MA has turned down and will stay down for several weeks. Since all indexes will go together as usual next week can start a big correction on downside. The monthly trend 8 MA is steadily up but a break below that line is a strong warning signal. However we are now in the summer and activity use to slow down. Stocks are only bought because there is no where else to put money. Stock "stock picking" funds loose customers all over the world to index funds which are cheaper and has had better results than many hedge funds. Since lots of money come into index funds they must immediately buy the index shares.
Greek and Iran is coming up soon and the US 10 year yield is hesitating to get below 2,10 percent. The Euro is in a break situation at 1.09 on up or downside. Small marginals for all financial charts. Commodities and bonds are too risky.
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