DAX Index Fails to Recover

The DAX index fell lower during the course of the last 24 hours as the pressure from the global indices seems to have had an effect on the market and this pulled the index lower in due course of time. It is likely that the index would continue to trade in a weak manner over the coming days.

DAX Moving Lower

The bulls have been trying hard to push through the 12800 region over the last few days and with the 13000 round figure tempting the bulls over the last couple of days, it appeared as though it would only be a matter of time before the index flew higher and the bulls would begin to establish their control once again. But that did not happen as they faced a lot of selling once again in that region and as a result of that, the index has fallen back towards the 12600 region in due course of time and this shows that the bears continue to be in control.

The fact that the ECB seems to be intent on tapering and ending the QE as soon as it can also seems to be worrying the traders. The incoming data and the inflation data have not been supportive of this move as yet but the hand of the ECB seems to have been a bit forced them and they have been made to be unusually hawkish in their last meeting due to the developments and the uncertainty in Italy and other parts of the Eurozone.

This is likely to be the driver of the index for the short term and as we have been mentioning many times over, gone are the times when the domestic factors were the only criterion for the movement of the DAX index. For the rest of the day, we believe that the prices would continue to move lower and be under pressure for most of the time.