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UnknownUnicorn121770
Jan 3, 2016 1:26 PM

DAX - Multi TF linear regression says compression until May 

DAX PERFORMANCE-INDEXINDEX

Description

On the chart i have drawn the linear regression for the time frame (TF) 360, 180, 90 and 30 days (12, 6, 3 and 1 month respectively).

12 months: bullish
6 months: bearish
3 months: bullish
1 month: bearish

a.k.a. mixed signals.

Looking at the linear regressions, i think we'll see a relatively neutral, range bound but volatile, first half of '16 with a possible strong directional resolution in May, if not sooner.
This compression in DAX would be in line with the current max pain path of SPY, which is near flat around the 205 level until April (at the time of writing this view), meaning it could be range bound again for the first half of the year.
Comments
TomoP
Geert2000
What about another 2-3 months bearish?
UnknownUnicorn121770
Depends on what you mean by bearish ie. what ranges/levels. I personally think the 12-month support and 6-month resistance are key for the first half of '16. That's why i've drawn that apex.
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