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

State of DAX - Calendar Week 35

State of DAX - Calendar Week 35

It is Sunday again and with the end of this calendar week it is time to look back on the last five trading days and determine the "State of DAX".

Before we do that, we take a short look on the recently announced stocks which will increse the DAX member count by 10, from DAX30 to DAX40:
  • Airbus SE
  • Zalando SE
  • Siemens Healthineers AG
  • Symrise AG
  • HelloFresh SE
  • Sartorius AG Vz
  • Porsche Automobil Holding
  • Brenntag SE
  • Puma SE
  • Qiagen N.V.

The DAX 30 will be trading as the DAX 40 for the first time on September the 20th.

Market Breadth for DAX 30


 
Here is the latest market breadth data for the German stock index DAX30:

The Advance Decline Line for DAX declined more than the index did, which could be a sign of weakness. It means that probably only few DAX components hold up the flag for this index.
The Advanced vs. Declined data was captured within a narrow range, with a breakout on the last trading day to the lower extreme. 
The McClellan Oscillator has been below the zero line for eight consecutive days and has reached the lowest value since July the 20th. For short-term focused traders, this could be an anti-cyclical chance.
The McClellan Summation Index for DAX declined and is now below the zero line. 
 
The percentage of DAX components trading above their SMA 50 declined to ~ 43% (was 53% last week).
The percentage of DAX components trading above their SMA100 kept its value (~53%) compared to last week.
The percentage of DAX components trading above their SMA 200 declined to 70% (from 73% last week).
 
When only looking at  the market breadth data, it looks like we've entered a weaker time period. If you are into anti-cyclical trading or like cheaper prices, you might get your chance soon.


Technical view

For the first time we'll also look at some aspects of the technical DAX chart.
The Envelopes in the first chart ("Index Price") show the typical statistical trading range for this index. If the price touches the lower band, it is considered as oversold. If the price touches the higher band, it is considered as overheated.
Recently, the price danced around the middle of the Envelopes (the SMA 20), but then declined a little bit:
Since the exact middle between the Envelope bands is the SMA 20, it is now clear that the price dropped below this line, which is a small sign of weakness. The last trading day was the second day in a row below the SMA 20, and it will be up for the next trading day to decide if we will see a further decline or not. 

For lovers of numbers: Currently, the price is ~ 1,42% away from the lower Envelopes band and ~ 2,34% away from the upper band.

Watch the next 1-2 trading days closely to see if the current mini consolidation will evolve into more or not.








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