DAX futures (Sept 2017 contract is FDXU7, continuation contract is FDXc1)
Yet another failure of the technical rally at the neckline of the breakdown at 12,487 adds to the downside pressure building.
Yesterday’s strong bear candle may have closed off the lows of the day but further opening weakness today suggests that the market is positioning for a test of last week’s low at 12,303.
Daily momentum indicators continue to suggest that having broken the two month trading range 12,487/12,949 rallies are a chance to sell.
The RSI is struggling back below 40, the Stochastics are tracking lower and the MACD lines are falling decisively below neutral.
Hourly momentum also suggests a more negative configuration with the RSI consistently failing around 60 and MACD lines turning lower around neutral, meaning selling into strength is increasingly taking hold.
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