DAX is one of the most popular indexes in the world. It is listed on Frankfurt Stock Exchange. Virtually every day there is very high volatility which gives many trading opportunities.


Session Summary 17.05.2017

Sooner or later it had to come to a correction on such a heavily overbought market, as we mentioned the day before yesterday. Moods have been severely damaged by controversy surrounding Donald Trump. In recent times, there are so many issues that may tarnish the image of the US president that it is hard to choose from which I should start

First, security adviser Michael Flynn was dismissed, is accused of dealing with Russian representatives and benefiting from these contacts. An investigation is under way, and the suspect himself may even be sent to jail.

Then on May 9, FBI boss James Comey is dismissed from office as FBI director. Yesterday market gets information from New York Times newspaper that Donald Trump had suggested to the FBI director to close the investigation against his close associate Michael Flynn regarding his dealings with the Russians.

Unfortunately, for the president himself and the atmosphere in the markets, it’s not all. During last week’s meeting of Russian Foreign Minister Sergei Lavrov and Donald Trump probably it were to happen to reveal secret intelligence information by the President of the United States. Donald Trump through Twitter is defending the right to share information with Russia, and the whole case is even warming up because of Putin’s involvement in the discussion,who offered to hand over the transcript of the conversation as a proof that no information was provided.

The effect of all confusion is that yesterday we witnessed strong declines on all major stock exchanges in the world, no matter how much truth is in all this. For investors political nuances are not so important, but the climate in the market. Undoubtedly, such scuffs do not improve and diminish the credibility of the president, who face important decisions, tax cuts and promised very large infrastructure investments.

The DAX index yesterday fell 1.35%, the S&P 500 was down 1.82%, and today the Nikkei index dipped 1.32% today following its counterpart on other exchanges.

The DAX index is at 12,600 points. Breaking this area will open the way to 12400 points. In turn its defense will allow DAX to move again towards historical maxima near 12800 points.

DAX Intraday

After opening the futures market, DAX index moved up a bit to wipe out yesterday’s picture. Permanent staying above 12600 points and the pivot point may suggest a move towards R1 at around 12700 points. In turn, descent below 12600 points can open way to S1 at around 12450 points.

Key data for DAX

13:30- ECB Minutes

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