German DAX Forecast to Strengthen Alongside S&P 500
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German DAX– Retail traders have turned marginally net-short the GER30, which tracks the German DAX, and a contrarian view of crowd sentiment points to further near-term gains. Indeed, our data across equity market CFD’s shows retail traders remain short across the board.
It’s possible that such heavily one-sided sentiment may coincide with an important price extreme—in this case favoring a GER30 reversal lower. Yet those extremes are by definition only clear in hindsight, and until we see a substantive shift in the opposite direction we will continue to call for equity market gains.
See next currency section: S&P - S&P 500 Once Again Looks like a Buy
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.