DAX Xetra (cash index)
The negative sentiment on the DAX continues to slip through the market as the bear drift backwards under the three and a half month downtrend.
Within this move, intraday rallies remain a chance to sell.
Even though, the market looked set for a decent recovery yesterday, the move sold off into the close to leave resistance at 12,349 and the market has dropped back lower in early moves again today.
A strong US Non-farm Payrolls report could be a trigger for further selling pressure on the DAX.
Technically the corrective signals on the momentum indicators are increasingly concerning, with the Stochastics dropping decisively, RSI below 40 and MACD lines are on the brink of a bear cross under neutral.
- These are still suggesting a retreat back to 12.100/12,130 and a close below there would open the September low of 11,865.
- Today’s traded high of 12,245 is initial resistance now.
The hourly chart reflects the bearish drift of lower highs, lower lows and momentum indicators implying rallies are a chance to sell.