Can charts show us anything of value? Dax (German Stock Market) led the decline, but now is stronger than SPY and DJIA on the margin. Or perhaps Europe’s problems are being discounted/”solved”?
DAX Leads Markets Lower Due to Fear in Europe over Sovereign Defaults
Note that the DAX (Black Chart) is above its Sept. 16th high while the SPY and NASDAQ remain 4% below their Sept. 16th high.
One Month DAX (German Stock Market) vs. DJIA and S&P 500 Index
Also, charts on credit spreads are stabilizing as seen at the link below.
http://scottgrannis.blogspot.com/2011/10/panic-update.html
Intermodal rail traffic is hitting new highs; another nail in the double dip recession chorus.
http://mjperry.blogspot.com/2011/10/intermodal-rail-traffic-highest-in-four.html#links
Of course, if these charts tell us and others something important perhaps the market has already discounted the information. What I notice is the change in behavior between the markets. The DAX is no longer as weak or weaker than the US markets.
Your thoughts?