State of Dow Jones - Calendar Week 42 2021

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Hi folks! Welcome to another part of the blog post series State of Dow Jones for Calendar Week 42 2021 Part three already. This week has been incredible for those that invested into the Dow Jones. But how healthy is the current price development and what's the outlook?   Technical Chart for Dow Jones Every "State of Dow Jones" blog post should start with the technical chart, so here we go (created on tradingview.com):   The Dow Jones managed to trade above its SMA 20 and also overcame the turquoise trendline / flag which happened to be at the 35 000 resistance level, which became a support shortly afterwards. The index only knew one direction during this week - upwards. The current price movement stopped a few points above the old all-time high and within the upper Envelope band. On the daily time frame, the index now looks slightly overheated. For now, the old all-time high around 35 631 holds, but it wouldn't be a big surprise if there was a small pull-back before t
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State of Dax - Calendar Week 32

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Hello and welcome to today's blog post about the

State of Dax

for Calendar Week 32

 

This is the first blog post involving the Dax since this index reached a new all-time high a couple of days ago. It will be interesting to see what the state of the DAX is compared to last week.

So - what is the current state of the German stock index DAX?

 

Big picture: All your market breadth indicators for DAX

Of course I will provide you with the latest data for the market breadth indicators.
Here is the usual indicator chart dashboard:





The indicators in detail

  • Advance Decline Line for DAX:
    •  Same as last week - the Advance Decline Line reflects the price movement
  • Advanced vs. Declined for DAX:
    •  Looking almost identical to last week - no changes here
  • McClellan Oscillator for DAX
    •  Clearly bullish now, almost reaching the threshold value "2", where the indicator usually tends to fall again; for the next days it would be highly unlikely that this indicator will continue to rise for more than one or two more days
  • McClellan Summation Index for DAX
    •  Last value from Friday is -0,37 (rounded), so almost at the zero line; if this indicator is above zero, some would see this as a signal to enter the market; however, as I said, the short-term indicator McClellan Oscillator is almost overheated, so I am not sure if for short-term windows the timing would be good  to enter a trade
  • Percentage of Dax members trading above their SMA50:
    •  70% of DAX members currently trade above their SMA50, which is a bigger value than we saw a week ago; clearly confirming the positive trend
  • Percentage of Dax members trading above their SMA100:
    • 63,33%,  slightly higher than last week
  • Percentage of Dax members trading above their SMA200:
    •  80%, no change compared to last week

Last week I claimed that a new all-time high could be imminent, and the breadth data of the last trading days supported this statement. Now for the next trading days, I expect that the DAX could cool off a bit, however, for the long-term, the outlook seems to be positive.

Don't forget that August is a weak trading month where trading volume is low. So let's not give our signals to much weight.


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