DAX Looking to Snap Losing Streak on US Election Drama
- Global risk appetite getting a boost on news FBI clears Clinton
- Oversold plus catalyst leads to outsized bounce
- Short-term support and resistance levels
On Friday, the DAX came within 30 points of the 9/30 low at 10190 before experiencing a small bounce to conclude Friday. To start the week, global markets are up big on news of the FBI clearing US presidential candidate Hillary Clinton of any crime related to her handling of emails. The S&P 500 is trading up 31 handles at this time, giving the DAX a big lift.
Oversold plus bullish catalyst equals strong bounce. The S&P was down nine days in a row, a string nearly unheard of, and while global markets suffered to a lesser degree, the DAX had made it six in a row to finish out last week.
Today’s bounce is so far carrying the German index above the 10/13 swing low, whether that will hold or not we shall see. From a trading standpoint, until the U.S. election passes tomorrow, there is little edge in establishing a position beyond a day-trade at this juncture.
Short-term resistance comes in at the 11/2 gap-down day at 11461, 10506/26 - the low of the day prior to the gap and the gap-fill itself, and not far beyond there we would look to a bottom-side test of the broken June trend-line(s) (10535/600, depending on how you draw the t-line). Short-term support comes in by way of today’s lows at 10381, the 10/13 pivot and Thursday low in the 10325/49 vicinity, below there the high and low of Friday at 10286 and 10212, respectively. 10190 comes in as the last line of meaningful near-term price support.
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---Written by Paul Robinson, Market Analyst
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.