🚨 Weekly Insights: DAX Flashing Warnings, US Markets Defy Gravity, Volatility Collapses
📉 Europe: Cracks Emerging in the DAX
Our models are flashing warning signals on the DAX Index:
Negative reversals observed in the index itself and 11 DAX constituents.
A notable 30 out of 40 stocks saw score deterioration this week.
The German banking and auto sectors look particularly vulnerable, with Quantmatix flagging a potential -5% pullback.
US Equities: Stretched but Still Climbing
Despite extended positioning, US equities continue to climb the classic “wall of worry”:
Price action remains bullish, with all news interpreted positively.
However, Quantmatix Exit signals are growing louder:
11 negative signals vs just 1 positive this week.
We remain cautious: while medium-term fundamentals are intact, technicals suggest we’re dancing at resistance — with solid support 2% below current levels.
S&) 500 Volatility Support & Resistance
🧯 Volatility Collapse: Calm Before the Storm?
One of the most striking developments:
US Volatility has collapsed, with the daily trading band now compressed inside the top of the weekly channel.
We’ve seen this setup before — notably in 2019 — and it persisted for months before volatility eventually returned.
This signals complacency, not stability. Stay alert.