DAX heading back into key resistance
The DAX is similarly heading higher despite recent pullbacks, with the price heading into the crucial 12,833 resistance level once again.
The last occasion saw a sharp drop for the DAX upon reaching this crucial level, highlighting the importance of this area of resistance. As such, the market bias is dictated by the ability or inability to break and close above the 12,834-12,846. A break below 12,712 would provide a bearish view for the pair.
Dow rebound continues to push onwards
The Dow Jones has managed to break through the 24,715 mark last week, paving the way for a recovery phase which is rooted in a bottom that seems to have been building over recent months.
An overnight pullback has done little to dent this bullish story, with the current bullish engulfing pattern pointing towards a likely next leg higher from here. Given the shallow nature of this pullback, it makes sense to await an hourly close above 24,860 to signal another leg higher for the index. Until then, there is still a chance we will see a deeper retracement come into play.