DAX back at Fibonacci resistance
The DAX has managed to rally back into the 76.4% retracement, following some fairly volatile consolidation over recent days. The ability to break above this 76.4% retracement is going to be key in determining whether we will continue to recover recent declines.
However, should we continue to respect this resistance level, there is still a wider downtrend in place which could come back into view. A break above 13,038 would signal the end of that wider downturn and confirm the bullish outlook instigated by the recent double bottom formation. Thus far we appear to be respecting the 76.4% once more, and therefore it is worth looking out for how we respond to that level as a means to dictate bias in the near term.
Dow continues to outperform
The Dow Jones has pushed higher once more, with the rally through 24,914 paving the way for a bullish breakout following a period of uncertainty.
With the break above 25,083, the view that we had bottomed out has certainly gathered steam, and thus further upside seems likely. That being said, with the price having pushed upwards in such a strong fashion, be aware of the potential for a retracement before long. We would need to see a break below 24,222 to negate the wider bullish outlook for the index.