Looking to Sell DAX As Stock Markets Retrace Higher
Stock markets have been retracing higher, but the main trend is still bearish and the bullish momentum seems exhausted, so we're looking to
The US major indices are opening with mixed results. The S&P and NASDAQ are down marginally. The Dow industrial average is higher. The European major indices on the other hand, closed with gains and near their highs for the day. A snapshot of the market at the current time shows:
- German DAX, +0.12% at 12756 point. The high price reached 12818.34. The low price was at 12628.78
- France’s CAC +0.65% at 6080.11. The high price reached 6103.50. The low price extended to 6029.53
- UK’s FTSE 100 +0.26% at 6942.65. Its high price reached 6954.21. It’s low price was at 6894.85
- Spain’s Ibex +0.82% at 7645.51. Its high price reached 7660.70. It’s low reached 7552.10
- Italy FTSE MIB, +1.0% at 21687.72. It’s high price reached 21753.75. It’s low reached 21397.8
German DAX Index – MAs Acting As Resistance
The retrace seems exhausted already at the 50 daily SMA
In the European debt market, the benchmark 10 year yields are lower. UK 10 year yields are trading at 3.867% that’s down -2.1 basis points, and well off the high of 4.019%. Although, the retrace higher in the German index DAX30 seems to be over now, with the stochastic indicator being overbought on the daily chart. The price is close to the 50 SMA (yellow) as well, so we are looking to open a long term sell signal here.
The global economy is heading into a recession as central banks keep raising interest rates and they’re not giving any signs to stop any time soon. So, the sentiment will turn negative again which will send stock markets lower, including DAX. So, we’re following the price action to see where we can open a sell signal.
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