German Index Looks Like It’s Topping Out, Says Frank Cappelleri, CMT

Frank Cappelleri, CMT, CFA, who currently serves as Chief Market Technician at Instinet, said Thursday that the DAX "is close to confirming a huge topping formation," according to a report from The Technical Analyst.

"Cappelleri says that if the DAX breaks below the neckline of a potential head-and-shoulders pattern on a closing weekly basis, it would complete a large top (see Chart 1). Not only would this be bearish for German equities, but it could also be a bad omen for US equities, with the S&P 500 also currently testing key support from its 200-day moving average and long-term trendline," said the report.

Read the full report on The Technical Analyst and view all Cappelleri's charts here: All Eyes On DAX