DAX Xetra (cash index)
The recovery is still teetering on the brink as a series of bullish arguments seem to be breaking down, the reaction to this will be key in the coming days.
A breakdown below the breakout support at 11,370 is a real concern, especially as the market has “filled” the gap lower in yesterday’s session and again this morning a rebound at the open has been sold into.
Coming along with the corrective configuration on momentum indicators, the slide is still progressing.
Another negative close today would add to the negative signals.
With the 21 day moving average now tracking lower for the first time since the January rally really kicked off, a move below the 55 day ma (currently 11,300) would be another negative sign.
- Essentially, the bulls would now need to close back above the old pivot band 11,370/11,415 to improve the outlook and unless that is seen, the market is increasingly positioning for a retreat towards the next key pivot at 11,000.
- The concern is that this 11,370/11,415 band is now seen as an area of overhead supply, which seems to be the case in the past couple of sessions.
- Initial support at 11,245 ahead of 11,000.