DAX Xetra (cash index)
A downtrend channel of the past two months is being tested following a hugely strong day for the bulls yesterday.
Can this move be sustained as the early moves have again seen the market drop back again following Trump’s move to escalate further trade tensions with China.
There is clearly a technical improvement in process with momentum indicators tracking higher with the RSI highest since late January, MACD lines and Stochastics rising.
Key to this improvement could now be a reaction to a pivot around 12,160.
If the market can hold on to the upside of this pivot then the pressure will grow on the upper limit of the downtrend channel.
Payrolls could be a key volatility factor to watch today.
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