DAX futures (Sept 2017 contract is FDXU7, continuation contract is FDXc1)
The DAX has continued the recovery of the past few days this morning, but how far can it go and will the sellers simply use it as another opportunity?
In the past three months the trend lower has shown rallies being sold into.
Momentum indicators now have a configuration that suggest moves to unwind have continually renewed downside potential.
The RSI is still struggling to break the shackles, languishing still under 50 and the MACD lines have barely registered the rebound.
On the hourly chart the move has unwound oversold momentum once more with the MACD and Stochastics showing signs of loss of impetus in the recovery in the past 24 hours.
The market is around 35 ticks higher ahead of payrolls and could now begin to consolidate, but if there is a failure to push on in the wake of this afternoon’s announcement, the sellers could easily take control once more.