DAX Daily Fundamental Forecast – February 15, 2017

The DAX continues to find it very difficult to break through the previous high and this is becoming increasingly concerning for the bulls. This concern has been made further worse by the fact that in the US, especially, the stock markets continue to reel under the Trump effect and their indexes have continued to keep posting record highs everyday. Normally, this would have rubbed off on the DAX in a large way and we would have been seeing the DAX also continue to post some record highs but this has simply not been the case so far.

Also, there has not been anything fundamentally flawed with the German economy and in fact, it continues to thrive and throw up some good and positive data, all of which should have caused the DAX to move much higher. But the bears in the index have managed to hold on despite all this and as time goes on and the bulls become to get jittery and the global fears and risks begin to increase at some point of time, we might find that the bears will slowly begin to take control of the index and then this might lead to a large fall in the index. It is imperative that the bulls seize back the control of the index and do the needful to push the index through 12000 so that they can have the next leg of the uptrend.

Looking ahead to the rest of the day, we do not have any major news from Germany for the day but we do have a host of data from the US and also have Yellen making her testimony which could impact the overall mood of the markets. But all said, we expect the DAX to continue to consolidate near its highs for today as well and so the traders would be advised to stay away from the DAX till a breakout happens.