DAX Xetra (cash index)
Downside pressure grows on the DAX and what seems to have been a negative drift is accelerating into a more considerable correction.
We spoke yesterday about using intraday rallies as a chance to sell as the market posts lower highs and lower lows under a falling trend and negative momentum signals.
The concern will now be growing this morning as the MACD lines are today posting a bear cross, which is the first since early October when the market accelerated sharply lower.
A test of the October low at 11,051 is now highly likely to be tested.
Negative daily momentum indicators have downside potential and there is a continuation to see any intraday rallies as a chance to sell.
- A break below 11,051 would actually also break a primary uptrend that dates back to 2011 and open 10,400.
- There is initial resistance at 11,233/11,310 with the resistance band 11,400/11,460 bolstered.