Last week was five consecutive days of decreases with growing volume. The news of the week were Friday’s US job report and its interpretation wasn’t obvious, as we could see on the chart just after release. In this moment NFP worse than expected means better situation for stocks because FED will have to wait with keeping low interest rates.
On Thursday FED president will announce half-year monetary policy report in front of US financial commission. Without doubt all investors will listen to Janet Yellen’s words to get some information about central bank moves in the next few months.
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Support at 9,350 pts was broken on DAX and the next important support is at 9,000 pts. If this support also will be break there is a chance of correction at 8,900 pts where we can find lower band of bearish channel in which DAX moves since November 2105. If bullish rebound will happen in this week only move above 10,100 pts will change weak technical situation on DAX.
On the weekly time frame situation is as bad as on daily one. Last 3 candles created bearish evening star pattern. In addition last low was deepened and index is at lowest level since December 2014. Technically current setup looks like simple ABC correction and perfect target level for ending of current decreases would be at 8,400 pts. There we can see equality if line A=B and key support (low from 2014).
