DAX Xetra (cash index)
The rally has fallen over once more as the market has gapped lower again this morning as the bears has re-surfaced.
Although yesterday’s sharp rebound saw the market closing 183 ticks higher, what was interesting was that the market close below the 12,000 pivot but also that a “negative” one day candle formed with the close below the open.
This has just added to the overhead supply resistance which is growing at 12,000/12,043.
Momentum indicators remain negatively configured across the past few months with rallies consistently being sold into.
The early selling pressure today just adds to this negative sentiment.
This is shown on the hourly chart with the hourly RSI again failing around 50/55 and MACD lines seemingly failing under neutral.
Rallies remain a chance to sell.
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