DAX Xetra (cash index)
The bull rebound is in danger of fizzling out before it has really begun.
Yesterday’s big gap higher from 11,315 saw the market jump strongly, however in ultimately forming a negative candle on the session (which included a close around the traded low of the day) threatens the turn the recovery lower again.
It now means that the pivot of the past two months between 11,400/11,460 is a key band of support.
Today’s open lower has consolidated within this band of support and how the market responds to this could kbe key.
- A close below 11,400 would be negative now and suggest that a retreat back to at least fill (or even close) the gap at 11,315 would be on.
However daily momentum indicators have swung higher and look more positively configured now.
- If the bulls can regather themselves to drive a close above 11,460 and yesterday’s close of 11,465 then this would be a positive response from the bulls.
- Resistance is in place with yesterday’s traded high at 11,567 which is (concerningly) bang on a previous reaction high from mid-November.
The hourly chart shows that the move lower this morning is unwinding positive near term momentum