The index was significantly stronger last Friday and at the start of the new trading week than recently prospected, after a larger upward price gap at the start of trading in the new week, the index even climbed at times near the 14,600 mark, thus trading over 700 points above the daily low of last Wednesday.
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 – a difficult starting position for the bears. The sidelines are therefore not a wrong option here today against the backdrop that the bulk of US traders will be abstinent today due to the holiday. Nevertheless, a consolidation back towards 14,300 points is favored here in the coming days.