Dax indicators 16.2.2012

Last week I was expecting Dax futures to decline at least to touch it's rising trend line or SMA(20). None if this hasn't happened yet. In despite of this, Dax hasn't even able to make a new highs for 5 days.

Volume still hasn't been interested of this rally. Even the latest performance points down.

Accumulation took a spike downwards, so the investors were selling heavily. 

Dax McClellan indicator is already pointing it's way down.

Dax cycle indicator has also peaked. In the below graph, I have marked all the previous cases when the indicator has peaked. You can compare it with index.

It is clear that the uptrend is not very strong and it is losing it's momentum. My trend following system keeps 6810 as a critical level to stay in an uptrend. Even the uptrend holds, the upside profit should be limited at this point. Investors have been buying and hoping and soon they could be selling on the news.

Dax resistance / support 12.1.2011

Dax broker up the descending trend line and has now been trying to push up through strong resistance area 6170-6190 and Fibonacci at 6203.

In a shorter term it looks that Dax should go lower (and attract more institutional investors to buy) if it wants to go higher. 6050-6080 would be fine. Below 6000 the picture is starting to look bearish and the gaps up  would have a exhaustion meaning and confirmation for a trend reversal.

I have been watching US markets closely lately, because it is obvious that is has been keeping the stock market up. S&P500 has already made higher level and is now trying to push up even this would be perfect level to make a trend reversal.

It also seems that money inflow hasn't been strong anymore. Money outflow at these important resistance areas could definitely trigger a decline in stocks.