DAX Xetra (cash index)
The bulls have had the reins pulled on their run once more as the market has continued to drift back to unwind the sharp gains of Tuesday.
This move may be tempering the enthusiasm of the bulls but as yet there is nothing overly negative that would suggest the run higher is coming to an end.
Momentum indicators are still positively configured, with the RSI spending the past two weeks between 55/65 whilst the Stochastics are still positively set up and MACD lines are creeping higher.
For now this is a correction within an uptrend phase since the December low (which comes in at 11,185 today) and as such will be seen as a potential buying opportunity.
- There is a gap lower from around 11,300 on the hourly chart whilst the recent high at 11,371 is resistance.
The hourly chart shows a positive bias with the hourly RSI continually bottoming around 35/40 and hourly MACD lines consistently above neutral.
- This retreat today is back towards the near term pivot around 11,216 which is a basis of support.
- The support at 11,050 is a higher low above the key medium term pivot around 11,000.
- It would only really be a move below 11,000 which would confirm the end of the recovery phase.