The correlation between the major indices is quite high at this moment. The DAX has a correlation of 93% with the SPX and 98% with the DJI for the long-term cycles. These 3, are moving from the bottom made during the corona crisis in a 3 waves sequence, and currently, they are within the attractor or blue box. It is an area where waves get exhausted or trapped for some time before the next movement begins. The dashboard is showing a bearish overall trend for this instrument, while SPX is still bullish but with many other indicators calling for one of the biggest crashes in history, like the Buffet Indicator. New highs can occur but as the price is trapped in the attractor, a 3 waves sequence can be completed or close to get completed, volatility is decreasing and the fractal behavior in the dashboard gives bearish signals like stronger bearish movements, higher persistence to the downside, and a speed moving with negative slope. The break of the key level at 14900 puts an end to this 3 waves cycle and opens the door to the bears.
Fintbi.com