DAX Index Continues Higher

The DAX index continues to make strong strides in its way ahead over the last 24 hours. The index has pushed through the 12400 region once again as the risks around the world began to erode once again and this has helped the markets to move higher in a slow and steady manner. The index is now trading near the range top and it looks as though the bulls now have enough momentum.

DAX Buoyant

It is indeed a surprise to see the market react in such a manner as the trade war intensifies between the US and China and under normal circumstances, this would only lead the markets lower but none of that sort has happened. The other risk that has been dominating the market headlines, with the war in Syria looming, has also been getting progressively worser only and hence the fact that the stock markets have been enjoying a positive impact is something that is a bit confusing.

We are now near the top of the range and hence it would be interesting to see the price action of the market at this point of time. The momentum does seem to be there for the bulls to break through but the risks are also there and hence there is a lot of uncertainty and distrust. If the index does break through, then we should see more and more traders joining in on the bull run which should fuel the move even higher.

Looking ahead to the rest of the day, we do not have any major economic news or data from Germany or the Eurozone and the focus of the day, as far as the fundamentals are concerned, are likely to be firmly on the US and the follow up to their action in Syria, if any. They have been threatening to act but so far, they have been holding back.