As we draw the week to a close, I suspect the market will begin to tail off and slow down. I think that volume will fall and the market will just move sideways. I am struggling to see any reason why the market will make any crazy moves right now because traders will be reluctant to lean too far out of the window this close to the holidays. The bias and technical trend is still bullish as we continue to make higher highs and higher lows.
So I do not think that will get much action now until after Christmas. The economic calendar looks pretty quiet, some trading offices have already packed up and left, so it’s down to use to decide when to do the same.
Today we gapped lower when we opened this morning down to 11435, found support here around the daily S1 (pivot point indicator) and bounced up to the current high of the day 11475 (just under the high of yesterday). I appreciate that this is all hindsight analysis, the easiest kind, but I liked the bearish divergence on the 5m chart at 11480 which would have provided a great exit signal, to any trader who took that long this morning.
On the daily chart, I am still concerned about going long right now, because although we have pierced resistance, we are printing candles that could be perceived as exhaustion candles. We are slowing down and this could affect the strong momentum that we have seen. We are over 1000 points higher than we were at the beginning of the month and we have barely seen any correction, so I would like to buy at a better price. This comment is also the main reason why I did not get into the move at the beginning. I am watching 111510 as an interesting level.
Intra-day, we are bullish above 11375 and if we break 11480, then we have made another higher high and the technical trend continues.
Dax Support & Resistance
|200 Day EMA||10481|