- Wednesday has seen a bit of negative in the DAX, as we continue to see a ceiling in this market.
- The €24,500 level is an area that has been significantly resistant multiple times, and therefore, I think you need to pay close attention to it.
- The market had broken above there about a week and ½ ago, but it rolled right back over.
- This shows that we do not have enough momentum to truly get going, and if we were to see that happen, then I think you would have a bit of “FOMO trading” in the DAX.
Germany and the European Union
Germany leads the rest of the European Union most of the time, and as a result, the German DAX will likely lead the way for other indices around the continent. The 50 Day EMA sits just below, which, of course, is an area that attracts a lot of attention in and of itself, and can at times, at least, offer a bit of support. If we were to break to the upside, the €24,500 level continues to be a major barrier that we need to pay close attention to, and of course, if we can break above there, then the DAX could finally reach “escape velocity.”
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It is worth noting that we have recently formed a “higher-level”, so it’s going to be important to see whether or not we can form a “higher high.” If we do, then I think a lot of people will be paying close attention to this market; therefore, you would not only see FOMO coming into this market, but you could see a bit of a “knock-on effect” into other European indices such as the MIB, CAC, etc. Germany normally is thought of as the “blue-chip index” for the European Union, and when it does well, a lot of other indices will follow suit. I have no interest in shorting the DAX, but I recognize that we are going to continue to see a little bit of volatility.
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