Monday, February 9, 2015

Germany could top here, impacting S&P 500

by Chris Kimble

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When it comes to discussing hot stock markets in 2015, Germany's DAX index would be part of a conversation. So far the year the DAX index is up around 11%, making it one of the best performing stock index's in the world.

The rally in the DAX index now has it facing the top of a multi-year resistance channel and up against a Fibonacci 161% extension level based upon its 2007 highs and 2009 lows.

Despite the strong rally in the DAX, momentum has been creating a series of lower highs over the past year, similar to what it did in 2007 and 2011.

A DAX breakout here could be a plus for the S&P 500 and a top here could be a negative influence. Investors might want to keep a close eye on this white hot index because what it does from here could send a clue to what the S&P 500 could do going forward. 

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