German markets rallied slightly from major level on Wednesday

The German index has found plenty of support at the €12,750 level, which has been important more than once. Ultimately, I think that the market should continue to go to the upside and I think that the €12,900 level would be an area that we will finally break out to the upside and perhaps reach towards the €13,000 level. Clearing that level is a major step forward, and I think that the buyers will continue to go higher, perhaps reaching towards the €12,200 level. Pullbacks continue to offer value, and I believe that the DAX is certainly the best way to play the European Union, as the German economy is by far the strongest economy there.

There is a lot of noise underneath, so even if we pull back I think that there are plenty of buyers extending down to at least the €12,550 level. Overall, I think that the market will continue to grind towards the €15,000 level, but that’s a longer-term call obviously and of course we need to see a bit of stability in the global markets overall. After all, there are a lot of geopolitical concerns that could come into play, and I think that at this point it’s only a matter of time before something disrupts the applecart, but that should be thought of as value. It’s essentially the DAX going “on sale.” Expect volatility, but I still favor the upside in general, so I’m not looking to sell this market anytime soon.

DAX Video 07.06.18