Do you notice something odd about the long-term trends of Germany's DAX with EUFN, Europe's MSCI Financials ETF?
While the DAX has been in a long-term uptrend, the EUFN has been in a volatile and whippy general downtrend, as highlighted by their respective channels depicted on the following monthly comparison chart below.
Whether that variance can continue in the coming weeks is debatable and whether that is a warning of further weakness for the DAX and other European indices remains to be seen...but worth tracking, as is the SPX relative to the DAX, about which I wrote in my post of March 4.
Even the EUR/USD is signalling further weakness...perhaps taking the EURO to parity, or lower...especially if the ECB does not raise interest rates at their upcoming meeting on March 10 this week.
