DAX regains ground following pullback
The DAX fell all the way to 11,146 on Monday, as it threatened to negate the recent uptrend. However, price has come back from the brink and is consolidating after a strong move higher yesterday.
With that in mind, a bullish outlook remains, with the ability to maintain price above the 11,242 support level providing greater confidence of another move higher. The next major resistance level in place from a wider context is 11,434 and while we have seen some signs of hesitation this week, the signs still look good for a move back to 11,325 and onwards.
Dow rally set to continue
The recent rise of the Dow Jones is nothing short of amazing, with new all-time highs being posted on a regular basis. The weakness we have seen overnight looks highly similar to Monday’s pullback, which ultimately ended in the trend resuming once more.
As long as we do not break below 19,747, then this bullish view continues to reign, with an hourly close above 19,956 providing a signal of the next leg higher. Of course, we have a certain FOMC meeting to contend with today, yet given the resilience shown by stocks in the face of Brexit, Donald Trump and Renzi, another rally wouldn’t be a total surprise.