Review:
The small wave of euphoria in the morning with prices above 13,400 points gave way to initial profit-taking in the afternoon, despite a very robust Wall Street performance after the long weekend in the USA. This should turn out to be the first warning signal for the buy side this morning: The index starts with a larger downward price gap in trading and subsequently set back below the 13,000 mark.
Outlook:
400 points below yesterday’s daily high, the bulk of the ultra-short-term downward movement is most likely already behind us. Accordingly, recovery attempts by the buy side tend to be expected in the short-term time frame. However, as long as these take place below the 13,200 mark, the bears tend to continue to have the better hand. From a risk-reward perspective, however, a short entry at the psychologically important 13,000 mark is not very attractive. At 4 p.m., Fed Chairman Jerome Powell will answer questions from the U.S. Congress. This is the decisive event of today’s trading day and should provide fresh impetus after 4 pm.
