Good morning traders. The SPD have agreed to a coalition government, so perhaps now we can put the election saga behind us. The Italian election was also threatening a potential banana skin. So the political uncertainty of late has been weighing on the Dax, so providing we don’t have any other issues, such as the US president placing tariffs on metals, we should be ok. ]

Wait a minute…

Ok, so we still have some distractions (politically). Keep an eye on the response from the Germans.

05-03-2018 Dax Levels

The key to trading is identifying the swing that you are in. I believe that if the low from this morning is a major pivot, then we are starting our ‘reaction leg’. Meaning a bullish bounce.

Looking at the levels, the Dax is bearish below the recent [broken] major swing low of 12280.

A typical reaction leg would often bounce back to previous minor swings and offer a chance to get short. So we could look for shorts around 12070-12100. That would be aggressive, but it’s on the shortlist for a first bullet.

05-03-2018 Dax Video

Here is a quick video summary for the Dax.