DAX is one of the most popular indexes in the world. It is listed on the Frankfurt Stock Exchange. Virtually every day there is very high volatility which gives many trading opportunities.
Session Summary 21.07.2017
The end of the week on the European dance floor ends with strong declines. The leader among the European indexes was the German DAX. The reason is Thursday’s ECB meeting. Although the Governing Council of the ECB maintained its readiness to scale up QE in the event of a deterioration in the economy of the eurozone, but added that the tapering talks may begin at the September meeting. Probably it could have been a spark that caused the euro to strengthen and fall on the European stock exchanges. Today, the key figures in the macroeconomic calendar will be flashPMI indexes.
The Nikkei closed the session with -0.74%. On Friday, the S&P 500 ended the day in practically the same place with a score of -0.04%. The DAX index was down sharply at the end of the week and ended the Friday session with -1.66%. The German index was established on 20 June this year. Historical maxima around 12951 pts. However, he has not been able to stay on this level for too long. Since then he has lost about 5%. It is hard to talk about bear market (according to many sources the bear market starts with drops of at least 20%) but surely there is a stronger correlation. Time will tell whether the correction is going to grow, or maybe it will be an opportunity to move further up? It is impossible to hide that the market is heavily overvalued and even when it comes to rebound, this movement will be subject to considerable risk. However, the nearest end of correction signals can be found on support around 12200 points. Another support is round 12000 points.
DAX index after the opening of the futures market is headed down. Breaking the level of 12200 points went to S1 support at around 12140 points. In turn breaking the maxima near 12250 points it can point the index towards the level of the pivot point around 12300 points.
09:30 – German Flash Manufacturing and Services PMI
10:00 – Eurozone Flash Manufacturing and Services PMI