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Is the current volatility a warning for the DAX at record levels?

Yesterday the positive turnaround in the DAX was almost as impressive as the unimpressive slide the day before. So, once again the German benchmark was the outlier across the major European indexes, only this time in a positive way. The index put back on 1.7% yesterday, where the CAC only amassed 0.76% and the FTSE 100 did not gain at all, but more on that one in a minute. So, the DAX reclaimed 323 of the points it had parted company with the day before. This time many of the leading automakers rebounded, but not enough to compensate for the heavy losses seen on Wednesday. The thing is; this volatility at what are record levels could be a warning for investors; that a major top might be coming. That is something to be mindful of folks. The collapse of the German government this week is not good news and something that has clearly thrown a huge amount of political uncertainty into the index over the past couple of days. That said, the DAX futures are pricing a slightly higher opening right now. The index closed at 19,362 yesterday and it is currently priced to reopen around 19,400 
 

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