German Stocks Just Broke 9-Year Support, And Could Hurt The U.S.

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October 17, 2018 6:46am NYSE:EWG

From Chris Kimble: While so many are wondering if the stock market bounce today will hold, they might want to look to Germany for clues to where stocks in the states could be headed in the near future.

The chart looks at the DAX index from Germany. The DAX has remained inside of rising channel (1) since the 2009 lows. Over the past year, the DAX could be creating a head & shoulders topping pattern, just above 9-year support.

The action of late has the DAX attempting to break 9-year support and the neckline at (2) this week. Keep a close eye on the DAX in the next couple of weeks because it could be sending an important message to stocks in the states!

The iShares MSCI Germany Index Fund ETF (EWG) fell $0.21 (-0.73%) in premarket trading Wednesday. Year-to-date, EWG has declined -13.36%, versus a 5.49% rise in the benchmark S&P 500 index during the same period.

EWG currently has an ETF Daily News SMART Grade of B (Buy), and is ranked #34 of 91 ETFs in the European Equities ETFs category.

This article is brought to you courtesy of Kimble Charting Solutions.

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