DAX falling back into wedge support
The DAX managed to push tentatively through the 12,612 swing high, providing a bullish signal to mark the end of the wider downtrend seen throughout recent months. With the price trading ever closer to an ascending wedge apex, we will have to see a breakout soon.
Given the inability (so far) to break through that 12,612 level with any gusto, there is a chance we could see the index move into retracement mode. However, for that to happen, it makes sense to await a break below 12,376 as a bearish signal. Alternately, a rally through 12,612 would provide us with a potential bullish continuation signal for the near term.
Dow breakout could bring near term retracement
The Dow Jones has been breaking higher from its own downtrend, with the push above 24,637 (and in turn the 76.4%) providing us with a signal that we are likely to break above the all-important 24,984.
For now it looks like we could see a short-term pullback, with an hourly close below 24,717 required to provide an immediate bearish signal. However, any such short-term downside would be expected to simply retrace the 24,243-24,860 rally before moving higher once again.