DAX breaks out during Thursday session at crucial level

The German index has rallied significantly during the session on Thursday as we continue to see strength in the DAX overall. Remember, this is the “blue-chip index” of the entirety of the European Union. With that being the case it’s likely that the market should continue to go higher as it looks like money is flowing into the European Union with the European Central Bank looking likely to keep interest rates and quantitative easing going in the soft direction. I believe that short-term pullbacks should continue to find plenty of buyers in this market, with the €13,000 level now offering a bit of a base for the move higher.

If we were to break down below the €12,900 level, then the €12,750 level would be the bottom of the entirety of the uptrend. I think that breaking below there would change everything, but right now I don’t think that’s going to happen anytime soon as stock markets continue to show signs of strength, and of course people are trying to find some type of return in a market that has been very erratic as of late. Although volatility has picked up in the United States, it appears that the German index has been relatively stable in comparison. I think we continue to see buyers take advantage of this, and therefore have no interest in shorting anytime soon. Longer-term, I still have a target of €15,000, but it’s obviously going to take a while to get to that region.

DAX Video 18.05.18