DAX Xetra (cash index)
Can the bulls maintain the technical rally and prevent another rebound from being sold into?
Having added 120 ticks, yesterday’s positive session was a strong bull candle but not decisively so, after giving up 40 ticks from the day high.
However, the market has continued to push higher again this morning and the recovery is still developing.
Despite this, the big caveats are overhead.
For now, this is a near term reaction higher but the big test will be how the bulls react to another bear signal.
The hourly chart shows that the rebound has already unwound the previous stretched sell off and is now around levels where the sellers will be eyeing their next opportunity.
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