DAX Xetra (cash index)
Traders are seeing an unwinding move on the DAX that has come in the wake of the sharp gains from the dovish ECB move.
After the huge bull candle of Thursday, there was a decisive retracement move back on Friday which cut almost 100 ticks off the market.
However this is a move that has now unwound back towards what is now becoming a key technical level with a pivot around 12,925.
Taking the moves over the past month as a range broadly between 12,600/13,200 then the pivot around 12,925 is almost in the middle of this range.
Subsequently this becomes a gauge for the near term outlook.
This initial move to the downside is testing the pivot this morning and a close below the pivot would turn the market increasingly corrective again within the six week range.
Momentum indicators are rolling over and momentum from the strong move higher has certainly waned.
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