DAX - Multi TF linear regression says compression until May
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.
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.