GER30 DAX clearing out shorts, preparing to make markets greedy

FX:GER30   DAX Index
163 0 6
Recent up moves in the markets have been strong. After the brexit crash and central banks providing extra ''liquidity'' and everyone buying the dips the markets have clearly overshoot. The DAX             broke through the upper trend line formed in April 2015, clearing out short positions as traders were overly biased on being short. We have to see if the markets stay sideways at this level, if so a correction down will soon follow.

However in my opinion new heavy short positions are in, thus pushing the markets even higher. This will continue until there will be a general feeling of greed everywhere, meaning heavy long positions and the believe markets will continue rising till the sky. Or in the case there is unexpected seriously negative economic data, in which case we can see a flash crash. Or after the US elections, in which case we may see a new ''the big short''...

Levels to watch:
10700 must break to continue bullish trend .
11300-11650 Final greed zone where the sentiment has turned into extreme bullish , be prepared if this zone has been reached in October/November this year.
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