DAX breaks to new 21-month high
The DAX has broken higher in a pretty incredible fashion, with the break back through the key 11,893 resistance level proving a strong buy sign. This trend is clearly defined, and with the next major resistance level all the way up at 12,400, there is certainly room for manoeuvre here.
With that in mind, buying on retracements looks like the best option here. We would need to negate the creation of higher highs and higher lows to invalidate that view. Thus, as long as price remains above 11,797, a bullish outlook remains in play.
Dow uptrend remains in play
The Dow is trying to break higher from a symmetrical triangle this morning, following on from yet another move to the upside for the index yesterday.
What we are looking for here is an hourly close above 20,757 as a buy signal. Or else, a deep retracement into the 20,654-20,662 zone for longs. Either way, bullish positions are favoured until we see a break below the previous low at 20,622.