DAX Index Unable to Break Higher

The DAX index made an attempt to break through higher on the bac of positive global cues but it was promptly beaten back by some strong selling at the highs which led the index lower during the course of the day and it finished the day below the 12800 region as usual.

DAX Tries to Break Higher But Fails

This was the first signs that the bulls in the index are trying to gather ome momentum in the move higher but it has to be said that the time that they have in their hands for doing this is pretty limited. The point to note here is that the DAX is one of the very few global indexes that is struggling at this point of time. The US stock indices and many of the Asian indices have been making some strong progress over the last few weeks but the DAX has been unable to join them in the bull run due to the issues that are plaguing the economic and political system in the Eurozone during this period.

We have been seeing that any kind of negative development in the Eurozone seems to have a large impact on the index and this includes any kind of bad incoming economic data from the Eurozone or any kind of political uncertainty in a country like Italy. The economy of Germany continues to remain stable and with it being rooted in the manufacturing sector for the most part, this is a given.

It is the global and the Euro cues that seem to be having a large sway on the index at this point of time and with it being generally expected that the bearish cycle may begin at anytime over the medium term, over the stock markets around the world, the bulls in the DAX are beginning to lose time and probably confidence as well and this could only mean that more correction and bearishness is along the way.