Do you feel it too? The stock markets are on fire. New all-time highs for the S&P 500 and DAX. Bitcoin is on the verge of setting a new record. More and more voices are calling for taking profits now in order to buy in cheaply later. But are we really at the limit? Can’t it get any hotter?

Fear & Greed Index on March 4, 2024 There is still room for improvement here. Hot air – that’s for sure. The index stands at 79 points. A month ago we were at 72. A week ago at 75. The trend is clear. When will the bears take over?

(Source: CNN.com)

If the DAX has its way and makes a possible measured move, we will soon be facing 19,000 points!

DAX in daily chart Here we see a nice ABC movement completing . It would be nice if the DAX would cover the same distance in the same period of time. It hasn’t managed to do that, but that doesn’t mean the idea is off the table. However, if we announce the end now, we would of course be at the provisional high – or just before it.

(Source: Tradingview.com)

The prices now have to decide whether to continue the journey and take the possible 18,760 points as a target. Or will the pattern be broken and we will see a setback?

This could be quite significant, as prices have been rising almost relentlessly since November. The DAX alone has gained 22.22 percent! It is only natural that someone would come up with the idea of taking profits now.

However, we could have thought the same thing after the first stretch in the chart with a 16.55 percent profit. The stock market often goes in one direction longer than one might think . We are currently experiencing this with Rheinmetall and NVIDIA as well. There is always new money coming into the market.

Conclusion Yes, we have been on a hot streak. But we haven’t reached the melting point yet . The DAX still has around 1,000 points of room to make its ABC move. The Fear and Green Index is in a similar situation. Of course, we don’t have to run all the way to 100. The market will release pressure beforehand.

It is undisputed that we are at the end of a gigantic rally. However, the extension can still take a while. The major indices are not showing any signs of weakness yet. Likewise, gold continues to move towards all-time highs.

Taking profits is always a good idea as a trader. As a long-term investor, you should rather hold your ground. Buy & Hold thrives on such a rally, and even if there are setbacks now, a new all-time high is only a matter of time.