Since the bottom we saw in mid January at 4060 in the DAX, stocks are trading significantly higher. The recession just started Macro Indicators are still pointing to the south.At first sight it looks like the DAX has build a good base forming a triple top. But I would keep cautition going long stocks as the big picture looks still bearish.
Hold an eye on EURJPY this week, as it is a good indicator on what stocks are doing. There is a huge bearish trend line at 120. A break would lead to 130 in the short term (highs end of DEC). These levels would lead to higher stock and 5000 points in the DAX.
My trading recommendation is to sell the rally trough 5000-5200 with stops above 5500 where we do see the 200 Moving average & a cyclical bearish trend line passing.
**click on the picture to see the charts**
