Yesterday in DAX analysis I wrote that DAX increased despite Wall Street on Monday. On the other side yesterday it depreciated despite good session in the US. S&P500 managed to break above 2,100 pts level. It was thanks to weak manufacturing ISM data in the US what gave hope to delay rate hike by FED. EURUSD rebounded from bottom what doesn’t help German bulls. On Tuesday only small companies index gained: SDAX +0.19%, the rest lost: DAX -1.06%, MDAX -0.72%, TECDAX -0.81%. What’s more interesting MDAX reached yesterday historical top on the level 21,677 pts and then dived. Among 30 DAX companies RWE scored a lot: +16.57%. On the other side Linde dropped -14.34% after revision of financial targets for 2017.
Markets are waiting for correction in the shape of Elliot Wave 2 or B and one of the reasons of decreases can be Thursday’s meeting of ECB. Expectations around Draghi are very big and it is hard to predict how the markets will react when they will be not met.
Monday and Tuesday candle create together bearish engulfing bar seen on D1 time frame. On the futures the nearest supports are at level: 11,250, 11,150 pts. The closest resistances are 11,350, 11,420 pts.
