DAX rallies into major resistance zone
The DAX has managed to rebound following recent losses, with the index pushing back into the 12,611-12,649 resistance zone. That zone represents the late-February peak, coupled with the recent high established on Tuesday.
A break above that zone would negate the notion that we could see a more protracted pullback from here. However, until that occurs, there is still a chance that the recent drop below the 12,376 swing low is a precursor to a larger pullback into Fibonacci support at 12,177 or 12,065.
Dow rally may not signal the end of the sell-off yet
The Dow Jones has managed to recover much of the downside seen earlier in the week, with the price retracing back through the 61.8% Fibonacci level.
Until we see a break above the 24,636 level, there is still a good chance we will see another turn lower in a continuation of the downtrend in place over recent months.