Dow and Nikkei 225 rise but DAX drops back
While the Dow and Nikkei 225 are aiming to make gains, the DAX has run into further selling.
Dow still trying to form a low
Hopes of a sustained bounce were dashed yesterday as the Dow Jones index dropped back from the session highs.
While it briefly moved below the low from Tuesday’s session, it has stabilised for the time being, helping to sustain hopes that a low is still forming around 43,400. A close back above 43,800 might help to reinforce this view.
A reversal back below 43,000 would strengthen the view that more losses are likely.
DAX heads lower
The DAX 40 index made a fresh push back higher on Wednesday, building on the gains from Tuesday.
Initial weakness this morning is being unwound, while further gains would target the 23,000 level. Very little has been able to damage the uptrend, though a reversal back below last Friday’s lows around 22,110 would indicate a short-term pullback.
Nikkei 225 rises off three-month low
The Nikkei 225 index has seen three-month lows this week, but buyers have emerged to defend the 38,000 level.
However, the past two sessions have also seen two attempts to test 38,500, both of which failed. The wide range of the preceding two days points towards indecision for the index; a close back below 38,000 maintains the decline from the February high. Buyers will want to see a close back above 38,500 to indicate that a rebound may be in play.
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