DAX daily chart for 51 days. You see that the picture has 5 different MA's. At the bottom 200 MA. Then there is 8,21,34 and 50 days MA. At Friday close these MA's came together in what looks like one point. If you click the chart and look at the bigger picture you will see that the red 50 MA is the lowest. This MA might rise until next Friday. The last 3 MA's will fall steeper down every day until next Friday and in correct order - that is from above 34,21 and 8. This cross is a technical sell signal that during the week will put pressure on DAX to move lower. In the middle of the chart you can see the exact point at close for each MA. They are shown in the order shown up in the left corner.
However DAX is very special because this index can stay longer in a sideways trend than other indexes. The weekly trend has now gone sideways for 9 weeks for instance. Below I will show the very long trend for DAX from 1994 and a weekly chart from Oct 2011.
From 1994 until now you see a big double top and the 2008 fall. Then comes current up trend with the target to reach the 2007 top. However it could not do that so a correction on downside came. From this last bottom current uptrend has completed its 5 waves and at the very last top formation the daily chart above shows the details
The one year old weekly chart looks like this. 9 weeks sideways but now the 8 week MA has turned down. You can see what happens when a 8 MA turns up or down in 4 more places on the chart. DAX also got a weekly Key Reversal bar last week.
My conclusion is that DAX is at the edge of falling into a long downtrend.
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