The German DAX could offer some kind of pullback, which I would love to see as an opportunity.
The German DAX continues to be very bullish overall, but Tuesday has been a bit noisy. At this point, we have to ask questions about the overbought condition of this market, but I think this provides a potential opportunity.
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I like the DAX. I do believe that it eventually goes much higher, and I spent most of last autumn looking at the DAX and reporting about it. I got a lot of comments about how it was a dead market, and there was no point in being involved in it. And lo and behold, we cross over into 2026, and we are almost 1,000 points higher than the previous high of consolidation.
This makes sense because Germany is on a spending spree, and they are in fact going to liquefy their economy. That is good for stocks, bad for the people. That is the same playbook that we have seen in the United States, and one would assume that most institutional houses will behave the same toward the DAX as they have the NASDAQ 100 or the S&P 500.
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Looking at the charts, I would love to see a pullback anywhere near 24,500€ and a bounce that I could buy into. Regardless, I do not have any interest in shorting, and we would have to break down below 23,000€ to give up the positivity.
The candlestick for the trading session on Tuesday is somewhat neutral to negative. It almost looks like a shooting star—it is a very small one, though. And quite frankly, I hope that gives us an opportunity. It will be interesting to see how this plays out, but I anticipate that not only is the 24,500€ level an area of support, but the 25,000€ level is probably an area of support as well, if for no other reason than psychology. So, I am looking to get on the right-hand side of the V and start buying the DAX.
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