Irrational market is about to end

6 Haz 2022

DAX
The macro condition is continuously deteriorating. Record braking inflation across the Euro Area, worsening supply chain issues, declining PMIs and lower consumer confidence. It's a non-stop barrage of negative news. Surprisingly enough, though, the indices have been having a great time.
But the last ray of light is about to be clouded with the ECB meeting looming this week. DAX is about to experience its first significant decline after a couple of weeks of resilient pumping.

As for technical analysis, we can observe a pretty clear double top forming at the ~14600 level, lowering volume and an exhaustion candle today - all pointing towards a reversal. Be wary of another low volume pump tomorrow but overall, expect a red weekly candle.