DAX downturn hits trendline support
The DAX has been regaining ground following a move into trendline support.
There is a strong chance we could see a more protracted move higher should we see a break through the near-term 12,504 resistance. Alternatively, we would need a break below 12,332 to bring a good chance of further downside.
Dow downside brings index into key support
The Dow Jones is trading lower in a much more consistent manner, with short-term intraday lower highs and lower lows in play off the back of a bearish rising wedge breakdown. This is bringing us into the 24,805 support level, which represents the first major swing low out of that wedge.
A break below that 24,805 level would provide a signal that we are set for further weakness going forward. Until then, watch for a potential rally up through recent intraday swing highs, such as 24,985 and 25,025, to provide a bullish outlook.