From one extreme to another
Dax investors have been very optimistic in a broader sense, because all the stocks have positive performance during last 20 days.
Rarely, all the stocks have positive 20 day performance.
Negative divergence with price and volume index no longer exists.
Dax cycles is almost at the all time high reading.
90% of the stocks are 1 standard deviation above their 20 day moving average. This is the highest reading we have seen in the history. 86,7% of the stocks are 1 standard deviation above their 50 day moving average. 90% is the highest reading we have seen. Previously as high reading happened in the end of October.
McClellan Summation Index is almost at the level 36,66 which is the second highest level in it's history. However, 50,27 is the highest reading we have seen so far.
Normally extreme conditions have tendency to go even more extreme before pulling back. Yet, it is difficult to tell, how long this current extreme condition will continue, but it might not end well.
