DAX rebounding from crucial 12,102 level
The DAX has also managed to rebound from a crucial support level, with break below the 12,102 mark pointing towards a wider breakdown for the index. Given that we have not seen that break occur, there is a strong chance we will see further gains over the near term.
It is worthwhile watching for the 76.4% Fibonacci resistance (12,378) as a gauge of whether we will follow through on this initial bounce. A rally above that level and 12,462 would raise confidence that we will see this upside extend further.
Dow uptrend slowing after key resistance break
The Dow Jones managed to break above the 25,693 level on Friday, negating the previous break below 25,114. This points towards further upside for the wider, longer-term picture.
For now, we are seeing the index slow in its ascent but this does not necessarily mean that we are about to reverse lower. However, given the size of recent gains, a break back below that 25,692 level would look likely to provide a period of downside for the coming week. Until then, further upside remains the base-case.