DAX: Broad recovery brings August’s record back into view

The DAX gained 3.3% in October through 29 October, reaching 26,040 points, its highest closing level of the month so far. That leaves it approximately 2.0% below the record high of 26,570 points, set on 28 August. Its year-to-date gain stands at 6.3%.

Numerous constituents are participating in the recovery: 25 of the 39 stocks analysed are higher for the month. The median constituent return is 3.7%, close to the index’s gain. Unlike the S&P 500 and Nasdaq 100, the DAX and its typical constituent are advancing broadly in step.

DAX market breadth: Two-thirds above the 200-day average

At the end of September, only 20 stocks traded above their 200-day moving average, while eleven were above their 50-day average. On 1 October, the number above the 200-day average briefly fell to just 15.

By 29 October, the picture had improved considerably: 26 of 39 stocks, approximately 67%, were above their 200-day moving average — matching the count on the August record day. Meanwhile, 24 stocks, or roughly 62%, had moved above their 50-day average.

DAX market breadth chart 

Scout24, Zalando and SAP support the recovery

Leading performers in October so far include Scout24 SE, up 22.7%, Zalando, up 17.9%, and Qiagen, up 15.0%. Index heavyweight SAP AG (DE) has gained 13.1%. Among the main laggards are MTU Aero Engines AG, down 13.6%, and Infineon Technologies AG, down 10.4%.

Broad participation was particularly evident on 29 October: 35 of the 39 stocks analysed advanced, while only four declined. The cumulative daily balance of advancing stocks minus declining stocks stands at +128 for October so far, more than reversing September’s −97.

Record high in focus, but confirmation remains incomplete

Despite improving breadth, new extremes remain evenly balanced: Seven stocks recorded new 52-week highs and seven reached new lows during October so far. The cumulative A/D line also remains below its February peak.

Market breadth therefore supports the DAX recovery, but has yet to confirm a new move to record highs. A rise above 26,570 points, accompanied by a further advance in the A/D line and more constituent stocks reaching new highs, would strengthen the positive picture.