German index grinds sideways with a slightly upward tilt on Wednesday

The DAX when sideways overall during the day on Wednesday as we continue to dance around the €13,000 level. This is a market that I think does have more of an upward proclivity, and with the FTSE 100 breaking out during the session I suspect that this pair will as well.
Christopher Lewis
Dax daily chart, May 17, 2018
Der Dax

The German index has drifted sideways overall during the day, but with an upward tilt. I believe that the market is trying to break out to the upside, perhaps reaching above the €13,050 level. Once we get above that level, I think the market is free to go to the €13,100 level, and beyond. I still have a longer-term target of €15,000 but also recognize it will take a lot of work to you there. I believe that there is essentially a hard floor in the market summer closer to the €12,750 level, and therefore I don’t have any interest in shorting this market until we break well below that level. I would anticipate a bit of volatility, but the volatility should give us plenty of opportunities to take advantage of value when it shows itself.

I believe that the overall attitude of this market is positive, but of course there is a certain amount of trepidation when it comes to the global markets are now. With the interest rates rising in the United States, this has put a bit of downward pressure on American stock indices, and that of course shows itself in this market as well. I do think that eventually the DAX continue to go higher though, mainly because of the idea of cheaper German exports. I believe the EUR/USD pair will continue to have a major effect on this market, with a lower euro helping this market.

DAX Video 17.05.18

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