DAX Index Forecast – DAX Under Pressure AgainThe DAX has been having a tough time cracking 13000
The DAX index was once again rejected as it got close to the 13000 region yesterday and it fell lower during the course of the day. The Asian and the US stock indices ended on a decent note but the factors within Europe seemed to have weighed on the DAX during this period and that is the reason why we saw it fall.
DAX Fails to Crack 13000
The Eurozone data seems to be getting once again and as we have been seeing over the last few weeks, it always acts contrary to what the investors and the traders would normally expect from the markets. The DAX reacts negatively to such good data as some good incoming data would mean that the tapering and the end of QE is drawing near. With the ECB also sounding bullish over the last month or so, it is pretty apparent that the ECB is viewing the end of QE as one of the tools to prop up the economy and also help some governments to tackle the turmoil that they are in.
The uncertainty in the political circles in Italy basically pushed the ECB to act and they have done so by reacting in a hawkish manner in their last meeting. This, coupled with the strong incoming data is only going to bring the end of the QE ever closer and this is likely to keep the market under pressure over the next few days. This is also one of the reasons why the bulls are finding it difficult to crack the 13000 region despite the attempts over the last few days.
Looking ahead to the rest of the day, we believe that the DAX would continue to trade under pressure over the coming days and this should keep the bears busy. The index seems to be locked in a large range between the 12500 and the 13000 regions for now and unless there is a breakout on either side, it is unlikely that we are moving anywhere soon.