Dax Technical Developments & Gold/Oil Ratio

In our July 3 piece Why Gold & Oil Point to Higher Equities? we made the case for further gains in the major stock indices on the rationale that a decline in gold relative to oil prices paves the way for an improvement in risk appetite (more favourable for energy prices than for metals). Since then, Gold/Oil Brent ratio has declined 7% and major equity indices are 2-3% higher after an interim decline in July 5-9. But WHAT ABOUT GERMANYS DAX? Here are the latest technical developments in the German equity index http://www.cityindex.co.uk/market-analysis/ashraf-laidi-blog.aspx

Ashraf Laidi