The index has been performing significantly weaker than its overseas counterparts for several days. While the S&P500 and the Dow Jones Industrial Average were able to recover significantly, the German benchmark index shimmied from one low to the next. Yesterday, the index fell back to the lower 12,800 area in after-hours trading, but recovered significantly in soäten trading and overnight. However, this recovery quickly fizzled out after 9 a.m. and the XETRA DAX closed its upside gap.
The relative weakness of the German benchmark index in recent trading days is almost eerie. Here, either a major fast crash or a recovery move of several hundred points is in the offing. Due to the multiple bullish divergences in the RSI, I currently prefer the bullish variant. After yesterday’s weak purchasing managers’ indices from Europe (but also overseas the data were weaker) should have understood even the very last that it does not look too rosy and have thrown their pieces on the market. At an hourly close north of 13,050 points, the first small buy signals would emerge, in which case prices in the 13,400 point range would be conceivable again in the coming week. The mood is currently very bad, the best conditions for a strong bear market rally! Have a great weekend all readers!