- The DAX has had a fairly strong day during the trading session on Tuesday.
- We have given back some of the gains, but all things being equal, it does look like the market is trying to bounce.
- That does make a certain amount of sense considering that the DAX was by far one of the better performers as far as indices are concerned that I follow.
That being said, it is probably worth noting also that market participants continue to wait to see what's going to happen with the tariffs coming out of the United States. They are expected to be announced on Wednesday, so the session will be very noisy as traders try to sort out where we are going to head to next.
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After all, that is going to be the front and center for most traders on where risk appetite goes. That being said, Germany is starting to wake up and jump out of recession. And that should help the DAX given enough time, especially as we got fairly weak inflation numbers coming out of the United States during the day. Really at this point, there is a potential scenario where the DAX, even if it were to fall, it probably falls less than other indices. For example, just take a look at the S &P 500 or the NASDAQ 100 and compare those to what's been going on in the DAX over the last several weeks.
The DAX has for the most part been relatively sideways while those indices have absolutely melted down. As long as that's the case, it shows that there's relative strength here. You may have traders hiding in Germany to protect themselves. The 23,000 euro level would be the next major barrier with 22,000 euros underneath being a support level.
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