Because of a rising upper trendline in the hourly chart the chances of a continuation of this steep rally are very little. Nevertheless a break above 7460 on Monday (adding 30 points per day to this trendline) would send the index probably up to 7600 within a very short period. In the chart below I showed a very stable trend channel since summer 2009. Since 2011 I think the DAX is forming a rising wedge which could indicate the end of this uptrend on a higher timeframe. At this moment I am expecting a last break above the upper wedge trendline which is actually around 7700. I do not have a precisely timeframe for that scenario but I think it should happen in 2011. But that does not mean that after the mentioned last break above the wedge-line the market has to sell off immediately.
The S&P 500 should also find some resistance around 1345 to 1350 after this very impressive rally last week. Very critical for the bulls is the 1294 level. It should definitely hold otherwise I think we could see lower prices than in June. But for now I think there is no need to get involved at these levels if you have missed this move. For sure it depends on your timeframe.
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