What now for the Dax over a month after the ECB plays it's hand?
Before the March ECB meeting I took a long in the Dax around 11280 and it looked to be off to the races on a break of 12000. I had a good opportunity to let some out but held off to see where we would go, and to gauge the QE effect on stocks.
At the moment we're back under 12k and the sellers on top look to be fairly strong. On the short term technical view we're heading for a break one way or another and I'm toying with taking some profits off of the table
Dax daily
I'm not liking the failure to stick above 12k so I'm wondering if it's time to cash in some of the position or hold out for more QE induced equity buying. Technically, a break of the lower support line around 11800 would get the alarm bells ringing and a bust of the lower line at 11700 would be my cue to take some profit at least. My indecision is whether the QE trade is already petering out or Greek worries are keeping things in check. Thirdly, my patience could just be wearing thin about the trade.
My gut says hold it and ride it out but my head says get ready to ring the bell
Your thoughts, as always, are most welcome
