Just like expected on Monday volatility was big and on DAX index the range was more than 300 pts. Bullish side controlled the market for only first half an hour when they managed to test 10,446 pts area. Later bears were in control and didn’t let till the end of session. DAX ended session on 10,139 pts.
Eurozone industrial production data was much better than expected and even that didn’t help bulls. Later Mario Draghi tried to move markets and EURUSD in good direction. He was very dovish about future ECB plans, he said that he will take any necessary steps needed to reach inflation target of the bank. It was completely ignored by the markets.
All German indices lost strongly. DAX -1.94%, MDAX -1.16%, SDAX -0.73%, TECDAX -1.42%. All 30 DAX companies decreased yesterday, the most RWE -4.29%, E.ON -3.98%.
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On Wednesday a long awaited FED meeting, but also on Friday there is “three witches” day. It is the day of December’s futures settlement and that is providing traditionally a lot of volume and huge volatility on the markets.
On DAX future after testing fibo 61.8% retracement there was a rebound and as the result futures are at 10,259 pts level. It should give some time to the index in the beginning of Tuesday’s session. If level 10,100 pts (fibo mentioned above) will be broken the target is at 9,750 pts.
