DAX continued to consolidate and range for the second day today as the buyers and sellers seem to be locked in a battle and are unable to push the index in any specific direction anytime soon. Some of the major stock markets around the world continue on their bull run but the DAX has not been able to follow through. Maybe the index moved too quickly too soon and that is why the buyers and sellers are a bit wary of pushing the index in any specific direction without being clear on what it will be doing next.
The index continues to lounge about 11500 and we have not got the correction that we have been waiting for. But the longer it spends in this region, the more difficult it becomes for the bulls to break through higher. The bulls have to make a decision and do something pretty soon else they could be exposed to the wrath of the bears. It is to the credit of the bulls that they have not let the index fall but at the same time, it is important for them to push through quite soon. We continue to believe that the DAX has not yet finished its bull run and we anticipate atleast one more leg in the bull run before we can see any kind of decent correction.
Looking ahead to today, we do not have any major news from the Eurozone and we expect some more consolidation and ranging for the large part of the day. The bourses will be looking towards the press conference from Trump later in the day to gain some hints on how his administration is going to be and this might be used to determine the short term direction of the markets. Stay safe and trade carefully.