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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