DAX futures (Sept 2017 contract is FDXU7, continuation contract is FDXc1)
Once again we find intraday strength being seen as a chance to sell as the DAX continues to struggle.
The strength of the euro remains a key factor in hitting Eurozone equities and the technicals on the DAX remain negative.
Rallies remain a chance to sell.
- The breakdown below 12,303 has subsequently left a resistance band 12,303/12,340 under which the sellers continue to plough lower.
- Yesterday’s rebound high at 12,204 is not yet another lower high but the market is now come within sniffing distance of the downside target from the two month top pattern at 12,070.
Momentum indicators continue to fall away into strong negative territory with the RSI in the low 30s, the MACD lines in decline below neutral and the Stochastics bearish.
Once more this morning the market is underperforming (especially the FTSE 100 and Asian markets).
- The initial support is 12,077 but there is little sign that the low has been seen yet and a test of the key April low at 11,965 is on.