The German stock market index had an amazing run from October to early April (up 48 percent from the low to high). But as I wrote about back in mid-March, there have been warning signs. Well those warning signs came to life this week, with the index falling 4.4 percent in the past two trading days, and 5.5 percent for the week. Below is a chart showing how the German DAX has also slipped out of a rising wedge formation. This should be respected over the near-term by investors, as this may lead to more selling.

By Theodoros Batsoulis
Technical Analyst
Risk Market
www.riskmarket.co.uk