German index false slightly on Wednesday, only to turn around again

The German index as you can see fell initially during the trading session on Wednesday, reaching down towards the €12,325 level, an area that has seen a bit of noise. I think that the market will continue to attract buyers on these dips as it is a value play for the traders out there that believe in the DAX, and I believe that the European Union will continue to attract money if we can stay out of some type of geopolitical concerns, or perhaps if stock markets around the world can pick up a bit of risk appetite. Lately, it has been difficult, but when you look at the DAX, it has been much more resilient than some of the other indices.

I believe that the “floor” is at the €12,000 level, an area that has been important more than once. I believe that the €12,000 level should be very important, and essentially the “floor” in the overall uptrend. If the market were to break down below there, then I think you can start selling, especially if we clear the €11,800 level, an area that coincided nicely with a major uptrend line. At that point, I think the DAX would come undone and unravel rather quickly. I don’t think it happens though, and I believe that we will eventually find buyers aggressive enough to turn things around and reach to the upside, perhaps trying to target the €13,000 level.

DAX Video 26.04.18