DAX Xetra (cash index)
Downside pressure grows on the DAX and what seems to have been a negative drift is accelerating into a more considerable correction.
We spoke yesterday about using intraday rallies as a chance to sell as the market posts lower highs and lower lows under a falling trend and negative momentum signals.
The concern will now be growing this morning as the MACD lines are today posting a bear cross, which is the first since early October when the market accelerated sharply lower.
A test of the October low at 11,051 is now highly likely to be tested.
Negative daily momentum indicators have downside potential and there is a continuation to see any intraday rallies as a chance to sell.
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