DAX is one of the most popular indexes in the world. It is listed on the Frankfurt Stock Exchange. Virtually every day there is very high volatility which gives many trading opportunities.
Session Summary 27.07.2017
The end of the week brings back move down the DAX index. He did not help some of the FED dovish who ended his meeting on Wednesday, as we wrote yesterday. In turn, technology companies back in the United States again. The Nasdaq Composite Index reversed yesterday from a historic peak. It has long been said that the valuation of technology companies is overvalued. Some directly compare the current situation to the Internet bubble in 2000. It seems quite a real scenario that the collapse in stock prices of technology companies is causing the bear market of other equity markets, which are also heavily overvalued.
Today Nikkei closed the session with -0.60%. Yesterday the S&P 500 ended the day in practically the same place with a score of -0.10%. The DAX Index ended with -0,76%. The German index was established on 20 June this year. Historical maxima around 12.951 points. However, he has not been able to stay on this level for too long. Since then he has lost about 5%. It is hard to talk about bear market (according to many sources the bear market starts with drops of at least 20%) but surely there is a stronger correlation. Time will tell whether the correction is going to grow, or maybe it will be an opportunity to move further up? Yesterday the index broke the support level of 12.200 points, which opens the way to the round zone of 12.000 points.
After opening the spot market, the DAX index is just above S1 support around 12.120 points. Breaking this level will open the way to S2 near 12.060 points. In turn, the break of 12200 points can direct index to R1 at around 12270 points.
14:00 – German Prelim CPI