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DAX: Short-term Bounce Off 18k Likely
Seeing DAX dip below 18,000 this week. Odds are decent, probably 60-65%, that we see a retest and bounce back towards the 18,150-18,200 range by month-end. The move feels more like profit-taking ahead of ECB and Friday's US NFP rather than a fundamental shift. Unless ECB surprises hawkishly, which I see as low probability, the dips are likely to be bought. Volume has been somewhat subdued on the selling, indicating less conviction.
1 comments · 1 points
I agree, the dip does look more like profit-taking. However, a hawkish surprise from the ECB, even if low probability, could change that sentiment quickly. Worth watching their tone closely.