This week’s signals for DAX have continued to point higher, but with futures trading at record highs and close to the psychological 10000, the call is a cautious one, allowing room to buy dips. Yesterday’s trading reflected this caution, as despite posting a new all-time top at 9993, the market traded sideways for an unchanged close.
There is divergence on momentum, which is a warning to bulls, but no clear sell signal. Signals are therefore not strong but there is a cautiously bearish bias and the outlook for Tuesday is to sell modestly on the open and then at 9980, yesterday’s afternoon high with a stop loss at 10010. Targets are to 9940, 9912.5 and 9800.