DAX Xetra (cash index)
The DAX continues to sit patiently at this crossroads of the resistance band 12,400/12,500 with the break in the coming days likely to be a key, outlook defining, move.
As the rally has moved over the past week, the bulls have gradually been losing their impetus.
Despite a positive candle on the day yesterday, the market closed with just a 1 tick gain and this consolidation has continued today.
This comes as momentum indicators just curb their recent recovery but the concern is that both the RSI and Stochastics are struggling in the mid-40s which runs the risk that this is a rally to be sold into.
Concern would grow if the market now starts to post negative candles and the resistance of the three week downtrend (falling at 12,480 today) is an ever growing issue as well.
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