DAX Xetra (cash index)
The Wall Street rebound has certainly boosted European sentiment on equities and the DAX is certainly taking part in the rebound.
As such the DAX continues with its higher volatility reactions to the market moves.
Underperforming when risk aversion hits, but outperforming as sentiment recovers (at least versus the FTSE 100 anyway).
The move today has driven a sharp opening gap higher which as yet remains unfilled at 12,011 (around the near term pivot around 12,000).
The rebound is now pushing through the resistance at 12,162 in a move that has broken a near three week downtrend.
However there is the bigger matter of a five week downtrend channel to now negotiate.
Can the bulls sustain a recovery this time?
Momentum indicators are improving within still negative medium term configuration, but this is clearly a situation that the bulls will be encouraged by now.
Also watch for the hourly RSI to push above 70 for the market to be taking on an increasingly positive outlook on a near term basis.
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