The DAX index is at an all-time high as investors remain convinced about the trend of the recovery. The blue-chip German index is trading at 13,945 euros, which is the highest level it has been on record. It has jumped by more than 70% from its lowest level last year.
What is happening: The biggest reason why the DAX index is soaring is that of the happenings in the United States. Yesterday, Jon Ossof and Raphael Warnock, the two Democrats, defeated their Republican incumbents.
That opened the possibility that the US will implement further stimulus to supercharge the economy. That will be a good thing for US stocks and the DAX constituents because most of them have a lot of operations in the United States.
Still, in the long-term, other policies of Joe Biden could have a negative impact on the DAX index and other companies. For example, his promise to increase wages and taxes will hurt their performance.
Top movers in the DAX: Most DAX constituents are in the green today, with Heidelbergcement, Bayer, Deutsche Post, Covestro, and Daimler being the best performers. On the other hand, the top laggards are Deutsche Bank, Delivery Hero, BMW, and Infineon.
DAX Index technical outlook
On the daily chart, we see that the German DAX has been in an unstoppable bull run. The index has moved above the 100-day and 50-day Hull Moving Averages (HMA) while the RSI is still below the overbought level. Therefore, in the near term, the DAX will likely follow the momentum higher as bulls aim for the next resistance at 14,500 euros. However, we cannot rule-out a pull-back in the next few months.
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DAX Index Technical Chart
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