The Dow and the DAX
What I find interesting about this chart is how the stock indices seem to trade in the same general direction, but that the Dow was outperforming the DAX from the start of the chart through June of this year, while the DAX has been outperforming the Dow from June through to today's trading. Interesting yes, but not surprising as a quick look at a daily chart of the EUR/USD shows a major trend reversal off of the June lows. That would also coincide with the changing relationship of the two stock indices. Which relationship is the leader is probably open to debate, but what we do know is that this strong uptrend in the EUR/USD is also seen in a stronger German stock market when compared with the US stock market. When one relationship changes, be on the lookout for the other relationship to change.
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