DAX Deja Vú
The MED countries have received a brutal beating over the past weeks. The DAX is still trading way to strong compared to many other European indices. Today we are getting some of that real risk off shown in the DAX. Just like last year, the DAX formed a head and shoulders formation, and broke that neckline. We are getting a similar set up today. Note how the first buy the dip was followed by a fall of more than 20% in two weeks.
Beware of catching those falling knifes. Chart below.