Dax indicators 2.5.2012

According to to my earlier posts, we are currently consolidating. The range remains unknown even 6750 seems to act as an important support/resistance.

20 day highs vs. lows seems a little bit sloppy at the moment. Could it turn down?

Also Dax cycles seems to be going down.

Dax strength indicator is currently in a consolidation area. I have marked the previous areas by red windows. So, don't expect higher close than 6800 during next be 1-3 weeks. Intraday highs don't matter.

Risk indicator came down as it was supposed to come.

Dax indicators 16.4.2012

The support at 6544 managed to hold, so now we can try the opposite direction and above 6800. RSI is already making higher lows, which is a positive signal.

20 day high-low ratio is already at low level comparing to normal cyclical behavior.

Dax modified RSI is also showing sings of a bottoming process.

Also the risk appetite is growing. 

Overbought and sold already converged, so the best shorting opportunities have gone so far.

Dax volume indicator is in unison with Dax. 

Bear territory seems to end soon.

Dax indicators 28.3.2012

Yesterday's call for a rebound canceled. It is not wise to try catch a falling knife at this point. There are evidences that we will see lower lows and lower close ahead. 

Dax volume indicator trying to lead the prices down.

It is always bearish when Accumulation/Distribution falls into negative territory...

...combined with investor's reduced willingness to take risk it almost guaranteed that Dax will have lower close during next 5 days.   

Dax Cycle is trying to point down.

McClellan Summation Index is already bearish.

The most important level tomorrow is 6974 and 7050. Below those levels we remain bearish and keep 6600 as our 5 day target.

Today Dax could climb above 7000 (target 7016), but eventually fall below 6900 (target 6895).

Dax sentiment / technical analysis week 41

Up it is

Nothing much to say. The market is rising as expected. The bullish signs have been clear for couple of weeks now.

Dax overbought and oversold signals show clearly how the selling has decreased dramatically and buying has started to increase. The below graph show how the inertia between these two is currently on it's way to bring these into equilibrium. So, we expect higher high ahead for the index. After all, the seasonality is on bulls side for the rest of the year.

The below graph reveals the development of individual stocks compared to the index. As you can see, less and less stocks are performing better than the index, which is desirable outcome. The market is still working like it is supposed to work!!! Currently 40% of the stocks has performed better than the index during last 20 days. Usually this ratio could come down to 30%, at least, before the market will start to establish a short term top.