DAX weakness could prove fleeting
The DAX is similarly falling back this morning, coming into the 11,434 support zone (Friday/Monday resistance). The difficulty of this retracement is the closest swing low is found at 11,352, which is some way from current price.
A break and hourly close below 11,434 could point towards a strong pullback, towards the 11,401 region. It is worth noting that the 11,434 level is a major historical point of reference (November 2015 high) and the ability to maintain price above this level is bullish by nature.
To the upside we have trendline resistance to contend with. As such, the breakout from this current descending triangle will provide the directional bias in the short-term. However, we would need to break below 11,352 to be anything other than bullish for the overall picture.
Dow retraces following triangle breakout
The Dow Jones has sold off sharply from the 19,989 high of Tuesday, with the 20,000 mark looking increasingly unlikely to be hit before Christmas. With the index currently moving higher, the ability to push through 19,938 could provide the bulls with some hope for the short-term.
However, there is a threat of a potential move back into the 19,884 Fibonacci support. In either case, a wider bullish view remains in place unless we see an hourly close below 19,852.