The DAX breaks 13000 this morning as European markets traded higher from the opening bell. We are seeing a lot of strong corporate earnings numbers coming out which is contributing to the momentum.
Germany’s manufacturing PMI data was also ahead of expectations this morning. So the next step for the DAX, assuming this bullish momentum continues, has to be to target the all-time highs.
The DOW and the S&P are already there thanks to their easy monetary policy. The ECB’s speeches will be heavily scrutinised to discover clues as to the potential position Christine Lagarde will take. So I expect to see more clues about that.
Dax Breaks 13000 – Market Profile
Notice how today’s initial balance has formed above Friday’s distribution range. This is a bullish signal. If we see a bullish range extension it can strengthen the chances of holding above 13000. A bearish range extension will likely see a retracement back to Friday’s point of control.
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Dax Index Analysis – Key Levels
Here is a closer look at the key levels from the volume profile: