• The German index continues to be one of the stronger ones that I follow, as we continue to threaten the idea of a breakout to fresh, all-time high levels.
• Every time this market sells off, it seems like there are plenty of people out there willing to get involved in it, as it has been a leader in the European Union, as well as the rest of the world.
• At this juncture, any time this market pulls back I am looking for a potential trading opportunity.

Technical Analysis

The technical analysis for this market is rather bullish, although I do recognize that there is a massive resistance barrier near the €24,250 level, so it is going to be difficult to break above there. If and when we can, then I think you will see a lot of “FOMO trading” entering this market, perhaps opening up the possibility of a move to the €25,000 level, an area that I thought we would head to sooner or later anyway.

Underneath, we have the 50 Day EMA at the €23,470 level and rising. This is an indicator that a lot of people will look for support, but even if we were to break down below there, I would anticipate the €23,000 level offering support. Ultimately, I don’t really have any interest in shorting the DAX, at least not until we break significantly below that level.

When you look at the totality of the chart, you can see that we had been in a very strong uptrend for quite some time, but have then consolidated a bit, which makes perfect sense considering that the market had shot straight up in the air for so long. At this point in time, there are a lot of moving pieces out there that could cause this market to make a big move, but ultimately, you have to assume that sooner or later the overall trend continues, and that should in and of itself bring in a certain amount of buying pressure.

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