DAX rally falls short for now
The DAX has attempted to regain ground this morning, following the dramatic deterioration we saw Since Friday. The first major resistance level of note here is the key swing low of 10,438, which price has failed to regain.
Given the long upper wicks evident on the hourly chart, it seems relatively likely we will see this market start to weaken once more. However, be aware that any failure to fall below 10,311 could set us up for a rebound, given the higher lower scenario.
Dow consolidates following sell-off
The Dow has suffered more than most since Friday and this morning has seen those losses continue. However, with price currently consolidating, we are looking at the potential for a bounce from here. There are few major swing highs to watch out for as a sign of a reversal.
However, it could be worth watching the shorter-term timeframes to follow whether we are indeed seeing a period of respite within the trend. Irrespective of any potential bounce, we look likely to return lower soon enough. That said, given the size of the sell-off, it pays to be cautious given the likely size of any rebound.