DAX surges back above key support
Wednesday saw DAX take a dip below the 50-day simple moving average (SMA) of 12,936, and even below the vital 12,954 support level. However, the buyers have stepped in, and we are seeing further strength this morning that could see the 13,095 area tested in short order.
If this is taken out, then the rally is arguably back on, with intraday dips providing fresh buying opportunities. The picture changes if we see a close below 12,954, with this potentially bringing a test of 12,678 into play if the index falls below the 12,844 low from yesterday.
Dow steadies but remains in downtrend
US markets have drifted lower, rather than suffering the outright selling seen in the UK and Europe. However, we can see the pattern of intraday rallies being firmly sold, so the Dow Jones needs to clear 23,416 as a first step, to avoid creating a new lower high.
Above this, the 23,468 highs from the beginning of the week are in play. A close back below 23,232, the lows from yesterday’s session, would open the way to more downside, to 23,174 and then 23,003.