German Dax – Forms Weakest Bounce Amongst EU Indices. Is it A Dead Cat Bounce?
All of the major European indices bounced green today, but the Dax had the weakest of them all. Looking at the daily chart below, we can see there was a lot of two way price action, with almost equal wicks on both sides. This is after selling on the open, bouncing, hitting intra-day highs, then tapering off those highs. The last part (tapering) shows bears are still selling on rallies, even intra-day.
The fact that the Dax had the weakest bounce means its most likely to lead the next sell-off should there be one. This also means if we are going to sell on rallies, …... Keep reading