Germany - DAX

Germany's DAX index (7 370) is approaching an important resistance level of 7 400 - 7 450 in the weekly charts. Price has now reached the top of trend channel and just below the upper weekly bollinger band, (currently at 7 430).

Look out for signs of a reversal and beginning of a short-term correction. The trend is still up.

S&P 500 - Correction postponed

S&P 500 reversed back on Monday and continued higher. Still there are signs that a correction is near.

Take a look at the April top below. RSI was as at a similar extreme level as now. Also, the two weekly candlesticks (red box) prior to the week the correction started in April, are identical to the two candlesticks we have right now.

Conclusion: There are signs in the charts that a correction is near. If the candlestick pattern from the April top will be repeated this time, then the correction should start next week, but this strong trend could continue higher until price reaches the top of the blue trend channel, before a correction starts. The trend remains up.