After its recent slide, the Dax (DAX 30) opened up with a gap lower again today. We are now at the lowest levels since April after piercing the 12,000 level. The international trade conflict and the currency crises in some emerging markets remain the dominant themes. 

There is a downside target zone between 925 and 975. This target zone represents the lower median line parallel and balance point extension confluence. See more about that in the video. It’s possible that we see a reaction at current levels (12015) because it we’ve just pierced a major psychological level. Any rally is likely to be sold as the market is clearly bearish, but we should not forget that the recent bearish impulse wave has given up over 500 points on the DAX. 
 
On the 10 minute chart, I have drawn a regression channel. The starting point was the 30th of August open and the second point was the afternoon high on 31st August. Once again, see the video for the details. We are currently at the regression channel low.
 
The price action from first thing this morning, after the gap lower, has been trading below the level of yesterday’s low. There are potential sell zones at the point of control, VWAP and the daily pivot. 
 
I think many strategies are going to be seeing whipsaws, given the psychological level that we are currently testing.
 


 

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06-09-2018 Dax Summary Video

 

06-09-2018 Dax Levels