Dax Cannot Hold the Pressure, S&P 500 in Record Territory
Strong Euro is suddenly becoming a problem for the European / German companies. We can see that on the charts of the DAX and SP500. On a side, we also do have Oil which is patiently waiting for a trigger to start a new wave but if it will be bullish or bearish is still unknown.
WTI Oil stopped the upswing below the 50% retracement of the latest downswing. This makes a good occasion for a sell but in the same time, 50% Fibo is a neckline of the Inverse Head and Shoulders formation, which makes sellers a little worried. Traders see that and they currently wait for the situation to develop.
DAX came back below the trendline and 12500 support. Currently they are defending on the 12350, which looks super important. Slightly below we do have a neckline of the big H&S pattern and that definitely can be game changer here. Obviously if we will break the neckline first.
In the same time we do have real holidays on the SP500. Everybody is happy there, companies have big profits and traders huge bonuses. Show must go on and another new all time highs have to be made. As long as we stay above 2405 points the mood on Wall Street has to be great.
This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis
This article was originally posted on FX Empire
