A more technical look at the markets from InterTrader
After two days of consecutive losses that saw the German benchmark pull back to the strong support area at 7140, the market has started on a negative footing this morning.
As the Obama victory euphoria fades out, index spread betting investors are now focusing on the fundamental issues on both sides of the Atlantic.
With the US facing the fiscal cliff riddle and the ECB President stating that the euro crisis is starting to hurt the German economy, it looks like there are choppy waters ahead for the DAX.
DAX Chart
On the chart above, we can see that the negative trend line is currently capping the price movement. Should this trend remain in place, the technical setup will favour short positions.
At the 7161 level, a downside penetration of 7155 would expose the index to the 7105 level.
Another quiet day on the European economic data front keeps the focus on US event risks with the US Consumer sentiment report among the most notable data set to be released.
Good luck and happy trading
Dafni Sedari, InterTrader
(Original article written 09 November 2012).
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