I will have to give credit to Roger and Mo from the DaxTrader group for today’s article, because I am actually in the back of a van driving out of Dorset on the way to a couple of gigs for the rest of the week, so I will be borrowing their analysis today. Hope you don’t mind guys.
In summary, the comments could be compiled into the following paragraph: “Nikkei delivers a big drop overnight. Us indicies futures all down. Gold and US bonds flying. All pointing to likely further Dax downside for on open. We actually had a 200 point gap and maybe that gap is too big to close. Also the FED appears indecisive from month to month which looks like they don’t know what to do now, not a good sign.”
9430 provided a good area of support and futures prices caught a decent bounce from there. I am aware that many traders were targetting 9440, so that reaction at that level would make sense. So shorts are being slowly strangled.
9440 is key support and I think a daily close beneath this level will be a big sign of future movement.
I personally managed to get in and catch a few moves, I held a position overnight, which I sent out to my subscribers and caught around 90 points there, which was a great start to the day.
Dax Support & Resistance
|200 Day EMA||10126|