Chart of the day: German woes

Not just weak data from Germany but its main stock index, the DAX 30, dropped for a third consecutive week. It is not alone but was chosen because it has the neatest, clearest, very bearish chart pattern. On closer inspection it looks more like an irregular rectangle top. Friday's close below the psychological 9,000 level completes the formation. The long-term trend line provided resistance for the recent sell-off, setting off the death cross (50-day moving average below the 200-day one) sell signal. Germany yesterday cut its 2014 growth forecast to 1.2 per cent from 1.8 per cent and its 2015 prediction to 1.3 per cent from 2 per cent. Investor confidence also fell to the weakest level in two years as recession fears loomed.