DAX grind sideways during quiet session on Friday

The German index went sideways overall during the trading session on Friday, as we continue to grind around the €13,000 level. This is a market that should end up going much higher, perhaps reaching towards the €15,000 level, but I think it will take quite some time to get there. I believe that short-term pullbacks continue to be buying opportunities as a currency markets favor cheaper German exports overall.

The German index will continue to be noisy and choppy, because quite frankly the markets overall are the domain of scalping currently, but it certainly looks as if the overall uptrend should continue. I believe that the market will eventually go looking towards much higher levels, but it’s going to be difficult to hang onto these moves in less you can use a small position. I believe that the €12,750 level underneath is essentially a “floor” in the market, and I believe that the overall attitude in this market should continue to favor value hunting based upon stronger corporate earnings, and of course the cheap Euro. I think that the overall uptrend hasn’t changed, it just has slowed down a bit so that makes for difficult short-term trading. Longer-term though, I believe that we have already made our decision to go higher and it simply a matter of picking up value as it presents itself.

If we did breakdown below the €12,750 level, then the market will probably go down to the €12,500 level, which is even more support. I think longer-term, we have massive support at the €12,000 level, but obviously I don’t think we’re going to test that area anytime soon.

DAX Video 14.05.18