DAX facing more losses
Further losses yesterday saw the DAX move below Friday’s low, although the rising 200-day simple moving average (SMA) at 12,007 is yet to be tested.
As was the case last week, a close above 12,322 is the real signal that a potential turn higher is at hand. So far, that seems unlikely, and we watch to see if 12,007 can be broken, and if so, whether 11,893 can hold as potential support.
Dow targeting 22,100 and 22,200
The Dow Jones tested the area below the 50-day SMA at 21,647 yesterday, but closed above it, and this should be regarded as a positive development. Now 22,100 and then 22,200 come into play as upside targets.
This 2.6% pullback since the most recent all-time high in August has also seen the index hold above the 21,682 high from early July.