DAX futures (Sept 2017 contract is FDXU7, continuation contract is FDXc1)
There is still a very messy look to the market in the past two months.
The mild uptrend was breached yesterday only for the bulls to rescue the breakdown and ultimately post a positive daily candle (despite the lower close on the day).
This has been followed by a jump at today’s open, however the opening gap higher is already set to be filled and the buyers seem unable to sustain the traction.
The concern is that with momentum indicators are still tracking lower and with the broken uptrend, rallies may be seen as a chance to sell now.
A negative close today would re-assert the broken uptrend and put pressure back on the downside.
The hourly chart shows negatively configured near term momentum with the Stochastics rolling over as the MACD lines are still below neutral.
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