DAX Xetra (cash index)
A degree of consolidation has set in for the DAX after last week’s decisive breakout above 11,000 has unwound back towards the pivot.
This is now becoming a key moment for the near term outlook.
However, if these were to be broken down then the bulls will be sitting far less comfortably.
Perhaps in a similar move to the September rally, the Stochastics are now beginning to tail off and threaten a sell signal.
This would though only be the first of the momentum signals to turn corrective again, with the RSI holding well above 50 still and MACD lines rising on the brink of a move above neutral.
So for now the bulls are still in control.
Despite this though, the supports of the pivot and the trend channel are holding and the bulls are happy to support weakness again this morning.
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