DAX Xetra (cash index)
Three consecutive negative closes have come with the selling pressure having significantly accelerated as risk aversion has spread across global markets.
There is a mild consolidation early this morning, but there is little to suggest that a recovery of any substance is near and subsequently any near term rebound will likely fall over for a retreat towards a test of the September low at 11,865 in due course.
Yesterday’s big bear candle was entirely below the previous pivot support around 12,100 which is now a basis of resistance.
Momentum indicators remain negatively configured but also with further downside potential, with the MACD lines only just having crossed lower under neutral, whilst the Stochastics continue to track lower towards bearish configuration.
Intraday rallies will be seen as a chance to sell now.
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