- The DAX was all over the place during the trading session on Wednesday as stock markets and risk assets all seem to be lost at the moment.
- That makes a certain amount of sense considering that nobody really knows what people can expect from the central banks around the world.
ECB Members Just Can’t Stop Talking
ECB members keep flapping their gums during this trading session, and that's just making things worse. However, it does look like the 18,000 level has held as a certain amount of support, so that is something worth paying close attention to. If we can continue to see 18,000 hold, then I think you might build some confidence allowing traders to try to push this pair back above the 50 day EMA. If we can take out the 50 day EMA, then I think the DAX market rallies all the way to the 18,600 euros level. If we break down below the 18,000 euros level, that could lead to a little bit of a deeper correction, but I still think there's plenty of support near 17,750 euros as well.
I have no interest in shorting the DAX, nor do I have any interest in shorting indices in general, despite the fact that the day on Wednesday was a little panic driven, but the reality is this is a market that is going to continue to benefit from number one being the largest economy in Europe, but also benefit from loose monetary policy coming out of the ECB.
As long as that's a thing that should continue to propel the DAX higher. I am a buyer of dips going forward in this marketplace, as well as most other international indices. Stock traders just simply aren't willing to pay attention to the economy and continue to focus on monetary flow. This has been an issue since the great financial crisis, and I think it will continue to be going forward as the economy and the stock market are not the same thing anymore.
Ready to trade the DAX in daily stock market analysis? We’ve made a list of the best online CFD trading brokers worth trading with.