DAX Xetra (cash index)
The recovery on the DAX has progressed this morning as the market has pulled over 100 ticks higher in early moves.
However, the bigger tests are ahead for the near to medium term recovery.
The market has though picked up well from last week’s low of 12,120 and effectively we see Friday’s dip to 12,135 which induced a rebound coming in as a higher low.
There is a tick higher on momentum indicators with the RSI into the 40s again (which is positive near term) and the Stochastics edging higher.
The way the market is moving also suggests that there could be further legs in this near term bounce.
For now, momentum also looks to simply be unwinding some of the aggressive selling of the last week or so.
The key will be how the market reacts to another bear signal.
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