DAX in the balance
Here too some of yesterday’s losses have been clawed back, with the outlook arguably neutral at present. Further moves back towards Tuesday’s high just below 10,700 would indicate the buyers are back in control, while a drop below 10,600 would seem to suggest fresh selling is the order of the day.
A bigger move lower would put the index back on course for 10,450. Bulls can take heart from the fact the index yesterday dropped back to test the top line of the previous descending channel, and then bounced.
S&P 500 remains range-bound
It has been tough being a bear on US markets over the past month, although buyers haven’t exactly had a great month either. The relentless chop ahead of this week’s jobs report is just a continuation of the entire month’s range-bound trading.
Once again a dip yesterday towards 2160 brought out fresh buying, exactly as happened last week. The bounce puts the index back on course to test resistance at 2185, with 2193 above this.
At least this provides a good range to trade, with the observation that we are awaiting a break of either 2160 or 2195 to indicate the next direction of the broader market.