State of Dow Jones - Calendar Week 41 2021

State of Dow Jones - Calendar Week 41 2021 Welcome to the second episode of the blog post series "State of Dow Jones", where we look at the leading US stock index from different perspectives and try to determine how solid the current development is. Technical Chart for Dow Jones Every "State of Dow Jones" blog post should start with the technical chart, so here we go (created on The Dow Jones overcame the old falling highs and the important resistance at 25 000, now trading at 35 294 points. The index is trading above its SMA 20 again and even went into the upper Envelope band. This means the Dow is slightly overheated and it is likely that the index will show a small pull-back before rising again. The RSI is at 60, three trendlines were identified and crossed during the last trading days. The technical chart provides us with enough confidence to say that the correction might be over and the outlook is neutral, or maybe even slightly bullish. Marke

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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