Dax still has a negative divergence with RSI and MACD, which could make momentum investors cautious. Break below 6970 would confirm the divergence and lead Dax to 6600. If Dax manages to stay high, 7400 maintains as an intermediate target.
Volume index has been rising and almost climbed above July highs. We need to watch this carefully for a hint of level 7400 for Dax.
Overbought - oversold indicator resisted it's normal inertia which would have taken Dax to lower levels. Now we are back in uptrend.
Dax 20 day highs vs. lows also indicates uptrend.
McClellan Summation Index indicates uptrend.
The only negative indication is investor beta, which is currently indicating risk aversion even it is still above positive level 50.
Overview: We haven't had any major negative news issue lately, so remain cautiously positive and bullish biased.
