Bias: Vertical (moving into resistance)
Resistance: 9903, 9909, 9950, 10000
Support: 9850, 9820, 9800, 9783
Dax & Market Evening Summary
New video is below
So we are set to make another daily high to this impressive and relentless bull run of late. The 99xx handle has been broken and we are now targetting 10k, which will significant for a number of reasons. Psychologically this is a milestone number, bears will use it (or close to it) as a stop loss, bulls will use it (or close to it) as a profit target. It has served as previous resistance in the past and is close to the top of a massive recent uptrend.
I am still waiting for a corrective move on this market and unfortunately for me I have missed the last two days action because of that. Without a correction the market looks a little bubblish, but it is not doing anything differently to what the S&P has already done, and recovering its losses from last month and continuing where it left off.
I have been saying for weeks that the Dax will be heading to 9750 and explained the reasons and rationale in my articles previously, whilst we may have already hit my prediction, these reasons are still active right now and they still have the ability to heavily influence price movement for the next few weeks. So the question is how high are we going to go, but I prefer to ask when will we drop first, before we head higher?
I just hope I don’t get left behind if this move carries on with its bullish stubbornness.
This Morning’s Commentary
Well, another bullish day so far and another new high, we’ve even taken out the September high and broken into the 99xx, briefly. At this rate we could be testing the 10k level. The S&P’s high in September was 2021 and is currently at 2071, if the Dax moved proportionately the same, perhaps 10150 is possible.
The daily chart is aggressively pointing vertical and is showing one of the steepest inclines that we have ever seen. I think there is a lot of momentum in this move, can not quite see a top here yet and it’s possible that the 10k level can go soon.
I think as soon as a correction/reversal does come, lots of people are going to jump on it.
Current trade setups: I missed the breakout this morning so no longer term trades out there that I can see. I am likely going to try a scalp short today,especially as there is a low volume pocket at 9850.