I watch overseas markets, on a day-by-day basis just to mainly get a read on what happened in markets overnight to see how our markets might be influenced to open as a result. So, I rarely pull up their long-term charts. But due to some sizable daily down-moves in the German DAX (their main stock index), I decided to look at its long-term weekly chart. It’s ugly! Worse than our markets.
It broke a multi-year uptrend line again and has just now traded back below its 200-week moving average. Other technicals are slumping too. Since Germany’s DAX is fairly influential in European markets, if it drags them down enough, it could spill over into our market and help spark its next sell-off too.
On another note. Remember that 5-wave sideways move I drew a white box around and said a breakout should happen soon? It broke-out to the downside, in after hours trading.