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DAX Tuesday

The DAX index moved lower during the course of the day yesterday though there were not much drivers in the form of fundamentals or economic data. We have been cautioning our traders about the weakness in the index over the past few days and it again came to the forefront yesterday. The traders need to be wary of this volatility.

DAX Corrects Lower

The risk sentiment took a dip yesterday but not much can be read into that considering the fact that the US stock markets were not running on account of a bank holiday in the US yesterday. The fall in risk sentiment led the DAX lower during the course of trading yesterday and the index fell from above the 12500 region towards the 12300 region during this period and it ended the day just above that region.

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DAX Hourly

It is likely that the DAX would start the day today on the backfoot as well as they do not have much global cues to fall back upon. The uncertainty over the QE and its tapering has been hanging over the index and this is likely to keep the markets under pressure during the short and medium term as well and thats why we have been insisting that any kind of bounce in the index is likely to be met with a lot of selling as it is unlikely to draw in buyers and it is only likely that it will provide an opportunity for the traders, who already have positions, to get out of it.

Looking ahead to the rest of the day, we do not have any major news from the Eurozone or Germany for the rest of the day and hence we can safely say that the index could continue to consolidate in a bearish manner for the day. This is likely to keep the index under pressure for today and it remains to be seen whether the reopening of the US markets after the long weekend would have a positive impact.

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