In the process, the market also closed well below the February top-side trend-line it was leaning on as support for the week or so before. So far, yesterday’s reversal day is showing a little follow-through this morning, but we’ll be quickly looking at 12660 as a hurdle to overcome if the DAX is to see the bounce grow legs and become a full-blown rally. For now, it’s resistance until it’s not. A move beyond 12660 will bring attention towards the underside of the Feb trend-line, and possibly new highs.

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It’s still a little unclear whether this week’s down-move is all we’ll see, or whether another wave of selling will push the market lower. The thinking on this end is we will see another leg lower before making a serious attempt to resume higher. It’d be preferable, too, as key levels of support have not yet been met. Ideally, we see a move to the old record highs under 12400 and/or (depending on whether they collide for confluence or not) the trend-line rising up from December under the April swing-low.

Getting to the point: 12660 is our focal point as resistance; maintain below there on a closing basis and the market will continue to be vulnerable to further selling. A move beyond will bring the underbelly of the Feb trend-line into play, but may also mean the market is gearing up for another run at record levels. Yesterday’s low at 12490 is our first level of support followed by much more significant support around 12390/75 and the December/April trend-line.