DAX Xetra (cash index)
Whilst Wall Street markets may be hanging on to their recovery uptrends, the loss of upside momentum and associated slip back on the DAX has now resulted in a trend break with the rally in doubt.
Yesterday’s mild loss of just over 20 ticks has broken a mini-uptrend and the consolidation in today’s session (not to be unexpected given the US mid-terms are today).
The consolidation is also now beginning to have an impact on momentum which has lost impetus in the past couple of sessions, with the RSI plateauing in the mid-40s, and Stochastics also threatening to roll over only just above 50.
This is a bad time for these indicators to be losing momentum, being that this comes where rallies are considered to be a chance to sell.
It seems that the US mid-term elections will need a risk positive outcome in order to help the now struggling recovery.
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