The DAX continues to see choppiness overall, as the markets are changing focus from fiscal spending in Germany to the Middle East, and back again.
Top Regulated Brokers
DAX
The German index has gone back and forth during the trading session again on Wednesday as we have seen German 10-year yields rise slightly, currently hovering around the 3.15% level. This is a market that continues to grind its way higher in an uptrending channel of sorts, but it's not explosive one way or the other.
This is a market that, quite frankly, I think continues to see a lot of buy-on-the-dip type of behavior with the 25,000 euro level offering support right along with the 50-day EMA backing it up as well. Ultimately, this is a market that I think you're looking for value in, and that value allows you to get involved on these dips to try to push the DAX towards the 26,000 euro level.
Looking for Value in a Choppy Market
Any breakdown below the 200-day EMA would change the overall attitude of this market, but really at this point I don't think this is the most likely of outcomes. After all, the Germans are going to be spending a lot of money on infrastructure this year and of course traders are assuming that there's going to be energy in the European Union this winter.
Now with this, I think you have to recognize that this market continues to be one that's volatile and choppy, but it does have an underlying upward trajectory. And in this environment, that's probably about as good as it's going to get with so many noisy headlines out there. The Federal Reserve does have an interest rate decision late in the day that might have a little bit of influence in global markets, but longer term the DAX will more likely than not ignore it.