European equity markets surge

Intermediate
  • European equity averages have surged higher this week having already secured from basing patterns into the end of August.
  • The announcement of the restart of US-Sino trade negotiations in October has added to a positive tone from the easing of a no deal Brexit threat and also from a reduction of tensions in Hong Kong.
  • Here we spotlight the German benchmark stock index, the DAX.

DAX bull extension

A firm rally Wednesday through 11992 and 12044.5 resistances and then higher again overnight through the notable 12099.5 barrier, to build on Tuesday’s dip and a rebound from above our 11837.5/803 supports, sustaining bull forces from the late August advance above key 11847.5 (for an intermediate-term bullish shift), to keep risks higher Thursday.

The late August move up through 11847.5 secured an intermediate-term base and an intermediate-term bullish shift.

For Today:                                                                                          

  • We see an upside bias for 12163.5 and 12174; break here aims for key 12260 and 12325, maybe 12385.
  • But below 12105/100 opens risk down to 12053.5 and maybe 11993.5.

Intermediate-term Outlook – Upside Risks: We see an upside risk for 12260.

  • Higher targets would be 12466 and 12650.
  • What Changes This? Below 11565.5 shifts the intermediate-term outlook back to neutral; through 11480 is needed for an intermediate-term bear theme.

 4 Hour DAX Future Chart

Dax

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