Morning Update- Overseas Markets: DAX,CAC,NIKK,& XLB

German DAX Composite (DAX)- Daily Chart
The overseas markets continue to rally and are on fire. The FTSE, DAX and the French CAC 40 Index (CAC) continue to out perform the US markets and make new 52 week highs. The DAX is up 1.78% today at 5647.42. As you can see on the daily chart, the DAX has broken out of an ascending triangle pattern. The DAX has gone up massively from 5290.50 to 5647.42 in three days! Now since it has had a huge three day rally, be prepared for it to possibly backtest the breakout line around 5553.50. The Aroon has just completed a bullish cross and the PPO is starting to turn up. The European Markets continue to make new highs. This chart tells you that the place to be is in stocks and on the long side.

German DAX Composite (DAX)- Daily Chart
Like the DAX, the CAC made a new 52 week high today. The CAC is up 1.64% today at 4956.60. As you can see on the daily chart, the CAC has broken out of an ascending triangle pattern. Again, since it has had a huge three day rally, be prepared for the CAC to backtest the breakout line. The Indicators and oscillators are in a full blown bullish trend.

The Tokyo Nikkei Average (NIKK)- Monthly Chart
As you can see, the NIKK has been in a strong uptrend for months. This month, the NIKK is up 2.17% at 16460.68. The NIKK broke out of the downtrend channel last month. This month though, the NIKK completed it's backtest to the down trend line and then swiftly went on to make new 52 week highs. Indicators and oscillators are bullish, although stochastics are toppy. If you want to play the NIKK, I would recommend that you look at the Japan i shares ETF, the EWJ.

Materials Select Sector SPDR (XLB)-Monthly Chart
The monthly chart of the XLB shows just how strong the materials sector has been for the last 2 years. As you can see, the XLB is making new all time highs. The RSI and PPO are making new highs along with price. Therefore another leg up is on it's way for this sector. This month the XLB is up 4.36% at $31.60.

The bottom line: world markets and sectors are making new 52 highs.