Thoughts on DAX pulling back from 18,200
Been watching the DAX the last few days, and it's certainly had a bit of a wobble after hitting resistance around the 18,200 mark. It looked like it was trying to consolidate above that 18,000 psychological level, but the sellers have clearly had their say. If it can't quickly reclaim that 18,000, especially with the current macro backdrop, then a deeper test of support around the 17,800 area isn't out of the question. My read is that if we see a sustained move below 17,700, then the prior bullish structure might be compromised, and we could be looking at a larger correction. Always good to remember that gravity is not just a theory, especially in markets.
Yeah, it definitely felt like a strong rejection there. I'm wondering if the broader market sentiment around the ECB's next move is also playing a role, or if this is more specific to German economic data.