DAX Xetra (cash index)
The bulls are under increasing pressure as the breakout supports have now been breached and the support begins to turn into resistance.
Exactly how the market responds to losing the support at 12,460 today could be key to the near term outlook, with the ECB also in focus.
Last week it had seemed that the bulls were using the breakout support at 12,460 as a basis of support, however in a sharp move to the downside yesterday, this support has been broken, turning into resistance.
This has comes as momentum indicators are now starting to deteriorate.
The Stochastics (which are the most sensitive of the three indicators I look at) have now given a near term sell bear cross signal, the MACD lines are close to a similar bear cross whilst the RSI has backed away from 60.
On the hourly chart there is now a corrective configuration on momentum and rallies now seem to be a chance to sell.
There is likely to be a rise in volatility around the ECB meeting this afternoon but unless there is a decisive close above 12,460 the outlook is now deteriorating.
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