On this chart what appears is that when DAX is in a steady rally, its top to top line tends to climb at 21% per year.
This regime being very fast and the average over the long run should be in the 7/10%, it comes to no surprise that DAX has large corrections every 5/10years.
Sometimes it deviate from that 21% speed line for long enough that when it catches up, it creates huge rallies (like it did in January 97 (post 94 correction).
We are exactly at this junction . DAX has corrected significantly in 2011 and has since followed a parallel 20% (42degres angle) speed line... IF THERE IS AN INFLEXION POINT HERE, you would get a scenario a la 97 with a catch up to 19,000 over a year.
In NORMAL Circumstances, the current area is an important resistance that is likely to create headwind at least for a few months.
I still could not find anything interesting about the DAX PE at this levels... There could still be value if it has to be priced at the same level than SP500 .
there is a resistance at 12500ish but the animal is strong... I think it all depends on EURUSD here... If EURUSD dives significantly through 1.0400 then DAX has enough momentum to do a few percent above current levels (can easily do 150/200pts a day so 12,800 is a few days away by that measure..)...