The conclusion of yesterday’s view (“DAX commentary: Is the correction over?”) was as follows: “With the rise above the short-term relevant downtrend on the hourly chart, the bulls took the reins of trading in the morning. As long as yesterday’s daily lows are not undercut again now, buyers have a chance to rally back to the 14,600 area.”
Bull’s eye! The index rose by over 200 points at times yesterday afternoon, reaching the target of 14,600 points at the U.S. closing bell at 10 p.m. in after-hours trading.
This morning, after yesterday’s rally, there is already another cold shower for buyers. Before the U.S. labor market data, the index corrects the bulk of the rally and closes its opening gap around 14,490 points. This level could theoretically be considered for the long side again, however, the NFP data are on the calendar in the afternoon – anything can naturally happen there. Accordingly, the sideline is not a wrong option here at the current time. Have a great weekend all readers!