Professor’s Comments Dax approaching trend break at 8,000
Posted by professor at September 1st, 2013
The DAX has fallen over 200 points in the past few sessions. If it starts to break below 8,000, it will tell me that another set of problems are coming into play. Germany and Europe are heavily dependent on mid-east oil, which has been rising steadily as tensions in Syria increase. If crude oil starts to push above 107 -110, it will impact European markets negatively. And as the attached chart for the DAX shows, the index has not done well in the past once a trend line is broken.
At this point, I’m not entirely certain what will happen to US markets IF the DAX starts to fall. Usually the Dow follows the DAX. But now that the US produces about 80 percent of its own oil, an oil crunch in Europe might be a boon for the US.
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Category: Professor's Comments