DAX is one of the most popular indexes in the world. It is listed on Frankfurt Stock Exchange. Virtually every day there is very high volatility which gives many trading opportunities.
Session Summary 05.06.2017
End of last week brings new highs on European and American stock markets. Data from US labor market turned out to be slightly worse than forecasts, but not enough weak to spoil sentiment on the markets. Employment in the non-farm sector was 138K, with a forecast of 185K. Unemployment rate dropped slightly again and in May it was 4.3% vs forecast 4.4%. The hourly wage has grown by 0.2% and was in line with market forecasts. The Fed goal is to increase jobs number by 100-150K, so the data fits expectations of Federal Reserve. Patrick Harker, president of Fed in Philadelphia, said on Friday that he still thinks the Federal Reserve should raise interest rates twice more this year.
S&P 500 index on Friday rose by 0.37% setting a new record of around 2440 points. Also DAX index has set a new historic highs at 12878 points. At present, DAX index historical highs are the closest level of resistance. In turn support can be found at round level of 12800 points. Yesterday we had a day off in Germany because of Pentecost. After breaking historical levels next target for bulls will be around 13,000 points and such a scenario seems quite likely. Threats to such a scenario are events such as the terrorist attack in London last weekend.
DAX index opened up with a bearish gap below pivot point at around 12800 pts. Breaking level of 12750 points and S1 near 12730 points will open way to S2 at around 12615 points. In turn, crossing 12800 points can give a signal for attack on historical maxima near 12880 points.