I will start with upcoming news. In the next 3 weeks we will see data which will influence indices behaviour. The closest one on next Friday – US job report. In the next week – ECB meeting which can be dovish. An a week later FED meeting.
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DAX D1: last week wasn’t easy for traders. 2 out of 5 sessions were bearish and last two days started with bullish gaps. This kind of moves is making trading harder because session is already set in the beginning of the day. Resistance at 9,600 pts was tested again and bulls managed to end the week near this level. Strong support is in 9,150-9,000 pts area which is created by February 15th bullish gap, it stopped decreases twice already. If attack on 9,600 pts resistance will be successful upward move should be continued to another important resistance at 9,900 pts.
DAX W1: On the weekly time frame we can see candle with long lower wick and with higher high and low than in last week. Unfortunately as long as DAX won’t go above 9,910 pts there is huge probability that current gains are just a correction. On the chart below I also pointed bearish trend line which lasts since beginning of December 2015. Break above 9,600 pts will be first positive signal, because trend line will be broken and exit above 9,910 pts will cause sequence of higher highs and lows, so maybe the price will go in 10,500 pts area. If decreases will come back and support area 9,150-9,000 pts will be broken another support will be at 9,700 pts, 9,400 pts.
S&P500 D1: New local high at US S&P500. Index was not so high since more than a month. Bulls didn’t managed to keep above 1,950 pts on Friday. If there will be no rebound, this bullish move should be continued with a target at 2,000 pts. If price will come back and stay below 1,950 pts index will still be in consolidation lasting almost two months and there can be another test of 1,810 support.
