Good morning traders!
As we enter our 4th bearish day in a row to continue the 2016 slide, I am watching the daily chart for a break of 10,110. If that level goes, I wonder if 9500-9600 is a realistic target to aim for. This would be around the 100% fib extension from the Dec swing.
There is still plenty of space above us to move into to close the gap left behind at the beginning of the week, but it’s difficult to maintain a bullish case at the moment and the only buying opportunities seem to be in the form of a minor relief rally before the next selling wave continues. We have already taken out the daily S1 today and volume picked up to support price around yesterday’s low. There might be plenty of stops around 10150-10180 to take out before reaching 10,100, so I suspect a bit of chop.
Short setups are also a bit difficult to spot at the moment too, because we have already reached the weekly S3 and could fall into a short squeeze trap if we’re not careful. However we still look heavy, the risk off theme (if you can call it that) still seems to dominate and there are still reasons to suggest we have further to fall.
Dax Support & Resistance
|200 Day SMA||10675|