European equities surge on Brexit hopes and positive US earnings (DAX)

Intermediate
  • 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.

For Today:

  • 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

DAX Chart

Steve Miley

Editor in chief

Steve Miley has 29 years of financial market experience and as a seasoned expert now has many responsibilities. He is the founder, Director and Primary Analyst at The Market Chartist, the Editor-in...continued

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