DAX Xetra (cash index)
DAX rallies are a chance to sell as the technical outlook remains corrective and points towards a retest of recent lows.
The filled gap in Friday’s session has been followed by a negative candle in yesterday’s session and the hourly chart there is a growing sense of a lower high now in place at 10,903 as intraday rallies are once more being sold into.
Daily momentum remains negatively configured on both a medium term and latterly a renewed near term outlook.
This is shown on the hourly chart where the hourly RSI failed at 60 and MACD lines have turned lower again.
Subsequently any unwinding move this morning is likely to come up against resistance that houses sellers once more.
The main caveat to this will come outside technicals with the FOMC decision tomorrow and a potential dovish climb-down which could induce a sharp recovery on Thursday.
However, for now the negative outlook for the DAX continues.
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