In comparison to the latest blog entry on this topic (end of August), the DAX moved with lateral fluctuations. Currently, the market is swinging between 9600 – 9900 points. The first big correction goals since this spring have been reached.
What does our sentiment indicator say?
It is clearly evident that the SentiTrade indicator (powered by our partner YUKKA Lab) has reached a good support level. The low sentiment marked in red of 2012, 2013, 2014 and 2015 is always on the same level. Looked at from this angle, the current DAX level initially look likes an attractive option.
Looking at the long-term picture you can see even more negative sentiment in 2009 and 2011. Due to the current momentum of the downwards movement in sentiment, as well as in the stock market, we expect in the medium-term prices to fall further to under 9000 DAX points; a recovery in the short-term, however, from the current level.
The technical forecast models in the Trend Cockpit PrognosD also support this forecast: all stock market models have stopped for weeks and months on “EXIT”.
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