DAX retracing recent weakness
The DAX is moving sharply higher, following a sell-off into the key 11,941 support level. We have seen the price pass through the 50% retracement, with the 61.8% and 76.4% levels up ahead.
Given that we are seeing a move higher from such a crucial support level, there is a possibility that this market will bottom out from here. However, for that to become a greater possibility, we would need a break up through 12,338. Until then, there is a good chance we will see this market turn lower once more.
Dow rallying through key resistance level
The Dow Jones is regaining ground this morning, with risk appetite improving. Crucially we have seen the price move through the 21,968 swing high. This provides a more bullish outlook, with the next major hurdle coming at 21,995.
For now, watch out for an hourly close above 21,968 to solidify the renewed bullish outlook. We would need a move back below 21,815 to continue the recent downtrend.