- Friday was slightly positive at one point, but we turned around to show signs of hesitation.
- I would not be a seller of this market, but I do suspect that we will probably get a little bit of a pullback.
Technical Factors in the DAX
The 17,350 euros level is a potential support level. After that we have the 17,000 level coming into the picture. I have no interest whatsoever in trying to chase this trade. I have no interest in shorting it, but I am very interested in buying the pullback. So, keep that in mind. It's also worth noting that the European central bank will probably have to loosen monetary policy as Germany is in a recession. We have the scenario where pretty much all central banks are likely to lose monetary policy. Germany, being in a recession, will drag the rest of the European Union down with it. So, the ECB is definitely going to have to come into the picture and try to save the day.
Germany is just too much of the European Union for them to ignore this, and I think the momentum has gotten a little overdone and therefore this stretch probably has the market pulling back, looking for value, looking for people who want to get involved.The last thing you want to do here is get into the FOMO trade.
You don't want to chase this trade, although I do expect the DAX to finally make it all the way to the 18,000 euros level before it's all said and done. This is a large figure that will attract a lot of attention as the market tends to like a lot of these large numbers to get involved with, and we often see a lot of support and resistance in this market. Either way, I really like this index, and think we will continue to find buyers time and time again. Shorting is impossible at the moment, and I truly hope we can get a chance at buying the DAX at lower levels.
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