DAX to challenge the downtrend
The DAX has been one of the best performing eurozone indices so far this year, comfortably outdoing the CAC40. The bounce from last week has meant that, once again, the index is challenging the downtrend line off the April 2015 highs.
At the beginning of August the index hit the line and then retraced. With the price overbought and few catalysts on the calendar we may see some hesitancy, but after a strong bounce since the July lows it makes sense to stick with the trend.
S&P 500 dips may entice buyers
Friday’s bounce has carried the index back to the top of the range seen at the end of July, with positive momentum returning. Any dip back to 2150 may well see fresh buyers emerge, and it would take a close below 2120 and the 50-day simple moving average to really indicate the bounce has run its course.