The DAX index (Germany) and the S&P 500 have followed similar paths over the past few years. Both bottomed in 2009 and 2011 around the same time. The DAX hit 5-year rising channel resistance in April of 2015 and reversed course quickly.
The DAX peaked a couple of months ahead of the S&P 500 last year.
Over the past year the DAX has continued to create a series of lower highs and finds itself around 4% below channel resistance. The S&P 500 finds itself around the same percent below last years highs, which took place around the 2,150 level.
Both are facing key resistance levels, around 4% above current prices. If both can take out these resistance levels, it would send a bullish price message to investors around the world. What both of these do with the resistance zones around 4% overhead, should be very important for portfolio construction going forward.