- The DAX have been absolutely crushed. Ultimately, the market is still in the midst of a larger consolidation area that I think a lot of people will be paying close attention to.
- The 50-Day EMA has been sliced through, and it looks like we are going to go looking toward the uptrend line.
- The €18,000 level underneath is going to be significantly important, and as long as we can stay above there I think not much has changed, other than we have shown that we are not ready to simply break out to the upside.
ECB and Rate Cuts
The European Central Bank has cut rates recently, and that could be a boon for stocks in the European Union, and therefore I think the DAX could follow. After all, the DAX is considered to be the engine of the European Union, as it is the “blue-chip index”, and it also greatly reflects the idea of exports coming out of the EU and to the rest of the world as Germany is such a major exporter to the rest of the world.
Top Regulated Brokers
If we were to break down below the €2000 level, then we could see this market breakdown toward the €17,500 level, where the market currently sees the 200-Day EMA. This of course is an indicator that a lot of people will pay attention to as it could give you a bit of a “heads up” as to what the longer-term trend is. If we turn around and bounce from here, then we have to pay close attention to the €18,650 level, which is where we have come back from. Quite frankly, I’m not ready to give up on what the text said, but I do recognize that you may need to see a little bit of a bounce before you start putting money to work.
Furthermore, even if you don’t trade the text itself, you can use it as a tertiary indicator on other European indices such as the AMX, MIB, CAC, IBEX 35, and so on. After all, it Germany is rallying, typically money starts going to the hotter markets shortly thereafter.
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