DAX futures (Mar 2018 contract FDXH8, continuation contract is FDXc1)
The reaction on the DAX to the long awaited breakout above resistance seems to reflect how difficult trading conditions are at the moment.
A decisive closing breakout above 13,238 resistance earlier this week has been followed by an enormous retracement to entirely unwind the bull break.
The fact that this was the reaction to a breakout that had been so hard to come by is a really tough blow for the bulls.
A breakaway gap at 13,135 was closed yesterday as the market posted a huge strong bear candle in a move that has continued lower today.
Momentum indicators have taken a significant shift back to deteriorate with the RSI at a two week low and suggesting that 13,000 will be breached, whilst the Stochastics have decisively crossed lower again.
Hourly momentum indicators show a negative configuration and rallies now a chance to sell.
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