- The German index fell rather hard during the trading session on Thursday as we plunged towards the 18,250 euro level.
- I suspect at this point in time we are still in the midst of some type of corrective phase and therefore we will get the occasional dip.
- However, the uptrend is very much intact, and I just don't see that changing anytime soon.
I am a buyer of dips and I recognize that it is probably only a matter of time before we rally again, but I do buy the DAX in very small bits and pieces. This is not a time to get over levered looking for some type of massive bounce. I think ultimately the market is starting to focus on the idea of indecision in politics when it comes to the European Union, but there's also an argument that can be made then perhaps the global economy might be slowing down. After all, US numbers are starting to drop. The PPI numbers in the morning were off by three-tenths of a percent, which is a huge miss. That could have some traders worried about taking risks in general, but really at this point in time, I do think this ends up being a opportunity to start buying again, and eventually we will go looking to the 19,000 euro level.
Even If We Fall from Here…
Even if we fall from here, the 18,000 euro level should be rather supportive and perhaps even the 17,700 euro level. The market breaking down below there opens up the 200 day EMA, but I think that is probably a lot less likely at this point. I would say that the candlestick for the trading session on Thursday has been rather brutal, but when you look at the longer term trend, you can see that it is yet another noisy day, probably nothing more than that.
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