Wednesday’s session took place in the shadow of just one event. We are talking of course about FOMC interest rate decision. Rates remained at current levels and it seems that September, December and even January 2016 are currently being considered as suitable months for the monetary policy normalization. On Wednesday we saw some increases on DAX indices, but they were moderate. DAX +0,34% (11211 pkt), MDAX +0,81% (20545 pkt), TECDAX 0,0% (1769 pkt), SDAX -0,07% (8927 pkt).
The main German index – DAX30 – increased, but as many as half of the companies ended the day in the red. HeidelbergCement lost 6.32%, Volkswagen lost 2.33%. Bayer and Merck once again became the biggest gainers (+3.93% and +2.01%).
As you can see on the below charts, we are still waiting to see were the Monday’s bearish candle will be broken. Moving above 11300 = long, moving below 11050 = short. Point for the bulls for maintaining above the upper limit of the downward channel.
Yesterday the newest data about DAX investing sentiment were published:
- institutional investors = 50% bulls, bears = 28%, neutral = 22%
- retail investors: = 53% bulls, bears = 28%, neutral = 19%
Within a week, a group of bulls gained strongly among both private and institutional investors. As you can see such rapid declines in the index and return to the downward channel completely worsened current sentiment and possibility of buying cheaper stocks.
