DAX Xetra (cash index)
Renewed tariff threats and the DAX has dropped back again early today.
The issue will be how the bulls can respond now and whether the recent recovery phase has already played out.
It now means that price action in the next session or two will be seen as key to the outlook.
There is a developing improvement in the momentum indicators, but a couple of negative sessions could really put the skids on this recovery.
As yet there is also still no bull crossover on the MACD lines, and if the Stochastics start to roll over there is a risk that the bulls will lose faith in the recovery.
A closing breach of this neckline support would be a deterioration in the outlook now.
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