Both DAX and Russell 2000 indices formed bearish chart patterns. These are developing chart patterns. In other words we still need to see confirmation. DAX is possibly forming a head and shoulder top. Neckline (support) is at 8,900 levels. Decisive breakdown below 8,900 will confirm the year-long top formation on Germany’s DAX index. Head and shoulder tops are bearish chart patterns.
Russell 2000 index might be forming a complex double top. 1,080 is a critical level for the index. Decisive breakdown below 1,080 levels will confirm the year-long top formation. These two charts should be on our watch list in the following weeks/month.