The US S&P500 and Nasdaq100 have declined for the past three days, with futures pointing to a negative opening on Friday. Dow Jones has almost erased the gains of the first half of May, losing for the past ten days. However, European indices are adding, clinging to significant support levels.

Germany's #DAX40 pulled back to its 50-day moving average earlier in the week, where buying activity intensified. Touching this line could be the fifth time since the beginning of the year which attracted bargain hunters. At this point, we can state at least a pause in the sell-off. The index near 18500 has now pulled back to the area of the previous peak at the end of March.
Under this scenario, the DAX40 will then aim to renew historical highs and overcome 19000.

The alternative scenario will be triggered in case of a sharp failure of the index under 18350, where the 50-day average now runs, which will be the first signal of the start of the correction. A move below 18250 would be the confirmation.

#Market review

▫️ Germany's #DAX40 returned to all-time highs faster than its peers, surpassing 18900.

The dip in early August fuelled buying appetite and triggered a classic technical correction.

▫️ The DAX40 is potentially heading for 19500 or higher to 21500.