DAX holding 18K – Is it more about the macro or just technicals?
Been watching the DAX pretty closely, especially with how it's just been clinging to that 18,000 level for a bit now. On one hand, you've got the general macro sentiment across Europe, which feels a little wobbly with inflation still a concern and the ECB's rate path always a talking point. Then again, you could argue it's just a strong psychological support/resistance level that's being respected, regardless of the underlying fundamentals. Are we seeing a genuine belief in European recovery, or is it more of a holding pattern driven by the charts? Like $BNO pushed up to 53.8, but that's a different beast. I'm leaning towards the latter, that the technicals are doing more heavy lifting than the macro story right now, especially when you see some of the economic data points. Am I missing something crucial here? Push back if you think otherwise.
It's a really good question, and honestly, I think it's a bit of both. That 18K level definitely has psychological weight, but the underlying macro concerns are probably preventing a decisive break higher or lower. The ECB's next move is the big unknown.