Indices ended the sideways trend that had been present on the charts since the beginning of July. From a technical point of view, all is ready for a new bullish wave aiming at new all-time highs.
DAX reversed with a nice iH&S pattern, which was created at an important support (12350). The neckline of this formation is, at the same time, a recently broken up trend line. That explains why the breakout was so strong and gave additional momentum to buyers. Currently, the price is undergoing a correction but the sentiment from yesterday should be continued, at least in the mid term.
SP500 was in a slightly better condition. Here we bounced off the up trendline along with the 2405 support (slightly above). The price broke the dynamic resistance and should make new highs soon.
The US dollar index tested lows from the end of June. This is not a surprise as it is in line with the trend and the trend continuation pattern suggested this would happen. As long as we stay below the mid-term down trendline and the lower line of the descending triangle, the sentiment is negative.