DAX futures (Dec 2017 contract is FDXZ7, continuation contract is FDXc1)
The near term corrective outlook is still building and the legacy of the big bearish engulfing candle from Monday still looms large.
Yesterday’s session that closed entirely flat after trading lower for much of the session, whilst the market has pulled lower again today.
This suggests that the buyers are struggling under the corrective pressure.
Momentum indicators are deteriorating again, with the Stochastics on the brink of a sell signal confirmed, the MACD lines on the brink of a bear cross and the RSI back below 70.
Watch for the Stochastics and MACD lines confirming their signals whilst the RSI dropping below 60.
These would then be a big indication for a deeper correction.
For now this is a near term unwinding drift but could turn into something more significant.
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