DAX attempting to break through key resistance
The DAX is back at the May/June double top and July double bottom neckline. Clearly given the existence of both those necklines, a break higher from here would be highly notable.
Such a break would point towards a potential double bottom projected target of 12,681. The interesting thing about that projection is that it falls short of the 12,735 swing high. With that in mind, a break higher from here would look like a retracement of the sell-off from 12735 and thus we could still see further downside. However, for now, we are watching intraday charts at this crucial resistance levels for it could bring us a spike higher or potential pullback.
Dow heading back into trendline resistance
The Dow Jones is consolidating after a highly volatile US session yesterday thanks to Donald Trump Jnr. For now, we have a clearly defined trendline that continues to hold. A break and hourly close above 21,441 would point towards a bullish resurgence.
However, until then we have a good chance of weakness at trendline resistance and thus shorts around trendline resistance, with stops above 21,441 look attractive for a short-term move back into the 21,400 region.