DAX fails to push on through Friday’s highs
The DAX is pulling back following a rally into 12.020 (Wednesday’s peak), with the failure to retake 12,068 certainly a worry. The key to whether this current move lower constitutes something bearish is an hourly close below the 11,919 support level.
Until then, we remain within a range that has been respected most of the time in the past 10 days. As such, any move into that 11,919 level would likely spark a bounce. A break below here would look bearish, while a jump back above 12,020 would provide a more bullish outlook.
Dow grinding lower, yet remains above key level
The Dow Jones has been drifting lower following the rally through 20,951 resistance on Friday. With the price moving gradually lower this morning, there is a good chance we could see another move lower in the short term. However, there is still a chance that what we are seeing is a retracement of the rally from 20,775, and as such the possibility of a bounce remains relevant.
A break below 20,775 would certainly be a big blow to Dow bulls, providing a more bearish outlook for the medium term. Until then, this downside could be fleeting.