DAX and SPX - brother & sister
How to read the chart?
In the historical point of view, the ratio between the DAX und S&P 500 is swinging in significant boundaries. This boundaries are signed in the Chart with red dashed lines above or below a center line (average).
What you also can see, is the developement of DAX and S&P500 in EUR resp. USD with separate scales.
Where is the beef?
The extremes of these ratios show very reliable extremes of the DAX and S&P.
And it doesn‘t matter, wether the extremes in DAX are significant lows OR significant highs.
Last monthes:
Because the last relativ low below the red dashed line was a relative Low in DAX and SPX, the actual low below the red dashed line must be the indicator for a relativ High in the DAX and SPX.
So: for sure, big direction is ahead, even DAX and SPX can gain another 5-8%.
Dan, 11th of december.