The DAX ended up being a bit negative on Monday, as the headlines of the trade agreement between the United States and Europe ending have hit the markets.
- The DAX ended up showing a little bit of negativity on Monday as traders continue to worry about the transatlantic trading situation, as the European Union has now torn up the trade agreement, they had with the United States over the tariffs levied by the United States on countries due to the spat in Greenland.
- That being said, this is a market that I think has plenty going for it outside of transatlantic trade.
- For example, the first thing would be the fact that the Germans are throwing a ton of money at the economy via stimulus, something the Germans have not done in the past.
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So, with that being the case, I think plenty of the companies in the DAX will do fairly well due to this money flying around the German economy. That being said, the market is likely to continue to see a lot of volatility due to geopolitics, but when you look at this, it is a market that's been very bullish for some time, as we have broken well above the 25,000 euros level. And now find ourselves testing that region on Monday.
Potential Buying Opportunity
I do think that eventually the market goes much higher, and this should present itself as a potential buying opportunity in one of the stronger indexes that I follow. The market had been sideways for months, but now, after breaking out of that consolidation, the measured move should be for roughly 27,000 euros.
And there's nothing on this chart that tells me it couldn't do that. Keep in mind, there are some headline risks out there, but at the end of the day, this index should be one of the biggest winners in the European Union.
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