German DAX snaps 3 day slide with a modest gain

Technical Analysis

Author: Greg Michalowski | german-dax

Major European indices end the session mixed.

The German DAX is snapping a 3 day slide with a modest 0.13% gain. Overall the market results were mixed and European equity markets. Provisional closes are showing
  • German DAX, +0.13%
  • France's CAC, -0.19%
  • UK's FTSE 100, -0.22%
  • Spain's Ibex, -0.8%
  • Italy's FTSE MIB, unchanged
The German DAX fell close to 13% from its October high, best concerns about growth with Covid cases rising.

Looking at the daily chart below, the German DAX price fell down to test the 38.2% retracement of the move since the March low. That level came in at 11472.94. The low price today reached 11458.56 just below that level, but could not sustain momentum. Keep that level mind going forward. Stay above is more bullish, move below and we could see further probing to the downside.

Major European indices end the session mixed.
In other markets as London traders look toward the exits:
  • spot gold is trading down $7.37 or -0.4% at $1869.80
  • spot silver is trading up $0.02 or 0.1% at $23.40
  • WTI crude oil futures are trading down $1.50 or -4.01% at $35.87. It's a low price reached $34.92 which was just above the 50% retracement of the trading range since the April low (buyers leaned against the midpoint level)
In the US stock market, the major indices all trading higher ahead of the big 4 earnings announcements after the close (Apple, Amazon, Facebook, Alphabet).

  • S&P index up 32.7 points or 1% at 3303.79
  • NASDAQ index up 157 points or 1.43% at 11160
  • Dow up 107 points or 0.4% at 26626
US yields have rebounded higher along with the stocks today.   At the top of the hour the US treasury will auction off 7 year notes:

US yields are higher ahead of the 7 year note auctionIn the forex market, the USD is the strongest of the majors while the EUR is the weakest. The EURUSD is the biggest mover at -0.73%.  The pair has moved down to test its 100 day moving average 1.16483 and so far, found dip buyers.  the low price reached 1.16542.

the US dollar is the strongest

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