DAX Xetra (cash index)
A corrective move in the past week continues to develop as the weight of the overhead medium term downtrend takes hold once more.
Since the market found resistance at 12,458 the market has lost ground in recent sessions as a series of lower daily highs show the bulls losing ground.
The DAX was shut for Unity Day yesterday where European markets had a reasonably positive session, but this has barely registered as traders have returned to sell the market in early moves once more.
This is all playing out under the shadow of the medium term downtrend, whilst momentum indicators are also now beginning to find traction in falling over at key levels.
- Another early decline today adds momentum to the corrective move that is pulling the market back towards 12,100/12,130 as the next support area.
- Initial support is yesterday’s low at 12,175.
- The hourly chart shows the market has fallen over around an old near term pivot around 12,300 under a lower high at 12,373 whilst hourly momentum is increasingly correctively configured to suggest that near term rallies are a chance to sell.