DAX Xetra (cash index)
European equities are falling off a cliff now and the selling pressure on the DAX is ramping up.
A run of big negative sessions have turned sentiment hugely negative and this morning the early pressure has breached the support at 11,009.
A closing breach opens the next support which starts to come in at 10,800.
Another longer term implication of the sharp move lower has been for the primary uptrend which dates back to 2011 now having been broken.
The long term top pattern completed below 11,725 implied 1870 ticks lower over the next 18 months which means that 9850 is possible in that time.
Near term momentum is negatively configured but with further downside potential too, so any intraday rallies are now a chance to sell.
There are negative gaps all over the place now which remains unfilled but there is little expectation of realistically being so, unless there is another huge shift in sentiment.
- Resistance initially is at 11,063 (today’s traded high) and overhead supply between 11,009/11,093.
- There is a gap at 11,177.
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