Our regional Matrix (see below) is OW Europe, as its EU sentiment grade is bullish at +28% (while US or Japan have very negative sentiment grades), its valuation less expensive than US, and its contrarian trend showing the least overbought state.

Indeed, the DAX has underperformed most indexes (-3.4% versus the S&P500) year to date, as shown below:

Technically, it has retraced 38.2% of its wave 3, and should rebound towards 14,387 as a wave 5 extension: