Dow rebound continues and DAX pushes back to recent highs
US markets continue their recovery, while the prospect of a vote on the German stimulus package has bolstered the DAX.
Dow
The Dow Jones index continued to rebound on Monday, extending Friday’s bounce from the six-month lows seen last week.
Continued gains above 42,000, the lows of late December and early January, would open the way to 43,317, the high from late December’s short-lived bounce and the mid-October high. A reversal back below 41,000 would suggest a new leg lower has begun.
DAX
This DAX 40 index has shrugged off the weakness seen last week and has pushed back to the record highs above 23,000.
The index’s resilience in the face of US market volatility may now point the way to further gains and new record highs. Whether this can be sustained in the event of an even deeper pullback in US indices remains to be seen. For the moment, any medium-term move to the downside would require a drop below the 22,150 area, which marked the lows over the last month.
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