- European stock markets and equity indices surged higher again Tuesday with ongoing positive comments from Brexit negotiations.
- This has built on the constructive breakthrough last week and also on the positive US-Sino trade talks.
- In addition, US earnings season started in earnest Tuesday with a host of financial companies reporting, with earnings and revenues in many cases beating expectations.
- Here we focus on the German benchmark index, the DAX.
DAX bull extension
A surge Tuesday to a new 2019 high through 12599, to reinforce upside pressures from the earlier October surge up through the key 12249.5 resistance, to keep the bias higher Wednesday.
The mid-October surge above 12249.5 set an intermediate-term bull trend.
- We see an upside bias for 12675; break here aims for 12750 and 12840.5.
- But below 12560/555 opens risk down to 12512, maybe 12463.5.
Intermediate-term Outlook – Upside Risks: We see an upside risk for 12840.
- Higher targets would be 13148.5 and 13552.5.
- What Changes This? Below 12375.5 shifts the intermediate-term outlook back to neutral; through 12000 is needed for an intermediate-term bear theme.
4 Hour DAX Future Chart