Germany's DAX Index continues its global leadership role.
The index remains inside of its 5-year rising channel (A), the top of which was hit over a year ago. After hitting that top, the DAX has continued to make a series of lower highs and lower lows inside of a falling channel (B).
Last week the DAX created a small bullish reversal pattern (bullish wick) close to rising support line (A) at (1).
At the start of a new week, DAX has rallied at (2), which by Monay morning, was impacting stock indices in the states (2).
The next big move by the broad markets in the states will most likely be influenced by the DAX. If the German index can break above falling resistance line (B), expect the S&P 500 to follow. If sellers step forward and break rising support (A), it could well drag down American stocks.
But for now, the DAX is caught between important rising support and falling resistance. What it does with that support/resistance will likely impact the S&P 500 between now and the end of the year.