Thursday, December 8, 2011

DAX is the main chart

In this market, where everything is so closely correlated, traders need to find what market leads, and just follow it.

Below is the chart of today's trading session. On it I display SPX and DAX futures side by side, starting from the time DAX cash market opened. You can clearly see how closely they trade.

Our stock market problems are mostly Europe related at this moment. ES wanted to rally and got ahead of DAX a few times during the session, but DAX was like the anchor, keeping ES in check. So until DAX bottoms and reverses, this US equities sell-off will not be completed.



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