DAX – almost -2% on Monday, +3% on Tuesday, big European index is being thrown like a second class boxer by Vitali Klitschko. This volatility shouldn’t surprise anyone who read my previous analysis.
On Tuesday bulls were helped by two things. Firstly: 61.8% of earlier upper movement was tested what gives a chance of ending correction. Secondly, environment was really friendly: since beginning of Tuesday’s session S&P500 futures gained and then EURUSD was weakening. This pair couldn’t defend 1.10 level and in the end of session in Europe it was testing already level 1.0904. Other big European indices also gained a lot: French CAC40 +3.16%, British FTSE100 +2.45%. All German indices ended day in green zone: DAX +3.07%, MDAX +2.62%, TECDAX +2.73%, SDAX +1.72%. All 30 DAX companies gained, the most Lufthansa +5.07% and Telecom +4.97%.
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Today we should expect similar volatility, however if we do not look at intraday moves, session can close around the same level. This is the event of the month (maybe even year, who knows), but it will happen after DAX close, so we can see market’s reactions only on the DAX futures. The closest support there: 10,100 pts, the closest resistances: 10,475, 10,665 pts.
