The conclusion of yesterday’s view (“DAX commentary: FOMO rally at the end of the month!”) was as follows: “After the 700-point rally of the past trading days, the index has a short-term need for consolidation or correction – the DAX is clearly overbought in the short-term time frame. However, due to today’s US holiday, the announced downward correction could also start tomorrow.”
The bears did not really get a foot in the door yesterday, the advised downward correction was actually so properly started this morning.
In the early afternoon, the index was already trading a good 200 points below yesterday’s daily high. In the short term, an interim recovery towards 14,500 points is favored (also on Wall Street, window dressing is to be expected for the time being), but then technical selling interest would be expected again. In the area of 14,300 points, the long side would then even offer itself again under opportunity / risk aspects.