Current daily bias: Early signs suggest bullish today

Support: 9835, 9795, 9787, 9732, 9682, 9618

Resistance: 10000, 9972, 9954, 9912, 9884, 9859

Dax Market Commentary

This morning there has been a decent surge up in the Dax, perhaps correctional behaviour from some of the recent slides from the last few days, but also perhaps on expectations of hawkish wording regarding further stimulus from the ECB. There was a monthly report being released, echoing the comments from the Draghi press conference but also the second TLTRO announcement as well.

Expectations for the second TLTRO announcement are for a more impressive figure than 82bn Euro, market expectations are 150bn, analysts expect around 130bn. If the announcement is lower than 82b, then the market will likely expect there will be QE early next year.

Liikanen has announced that ECB will assess which measures are most effective and assess economic situation again in January.

The announcement was 129.84bn and the market responded to this as a dovish announcement sending the Dax up and the Euro down. So even though this was much in line with analysts expectations, the market has spotted something to make them believe QE is imminent.

The low volume pocket from yesterday was taken out a couple of times today, no longer respecting it as a level of support or resistance.

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