DAX Xetra (cash index)
The rally has fallen over as the bears seem to be regaining a grasp on the market and concern grows with the fact that the rally failed in the overhead supply suggesting a key ceiling is now forming on the DAX.
A resistance band of the old lows between 11,726/11,865 caught the high from this rebound at 11,848 and with two successive bear candles the pressure is mounting once more to the downside.
This comes as momentum indicators roll over and it reflects a position that rallies continue to be seen as a chance to sell.
The hourly chart shows continued failure under the old downtrend channel, whilst momentum indicators are posting renewed sell signals.
A bear cross on the MACD lines comes as RSI and Stochastics both falling with further downside potential too.
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