The German index has been a bit positive on Friday, as we are still trying to make fresh new highs in this uptrend. At this point, it is energy that could be the biggest issue going forward.
DAX
The German index has been a bit positive during trading after initially dropping on Thursday as we continue this very choppy upward grind. The DAX has been moving on a lot of different things, not the least of which would be energy concerns because, quite frankly, one thing that Germany is very vulnerable about right now is imported energy. If the situation in the Persian Gulf deteriorates, that could put a lot of damage into the economy of Germany, as that industrial base is such a big mover.
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Ultimately, though, this is a market that continues to see a lot of questions asked about it, and the overall comeback seems to be pretty serious. This is a good sign, and I like the momentum that we have seen over the last few sessions.
Key Support and Market Catalysts
The 26,000 euro level is a major support level from what I can see, and with that being said, I think you have to watch that very closely. If we were to break down below there, then it's possible that you could see a little bit of negativity. Nonetheless, this market is one that I do like buying at the moment, and if we can break above the 26,500 level, I think we could go higher.
The main thing right now that I think is driving the market is that tech has performed fairly well. It's also been pretty decent in the industrial side. Luxury has picked up a little bit over in France; that will sometimes drag Germany along with it. And though the ECB is getting ready to raise rates by 25 basis points, the market already knows that and has absorbed that information.
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