The German DAX was once again under heavy pressure yesterday on new episodes of U.S. trade conflicts and on oil prices dropping. The index broke major support levels and ended up tumbling 1.6% with commodity-related stocks dropping the most. Global stocks are rebounding a little this morning, and are expected to go higher today after China announced that a delegation would travel to the US later this month for trade talks. Looking ahead in the economic calendar, wholesale prices from Germany and the eurozone's trade balance are due this morning. Across the Atlantic, trader sentiment may be influenced by readings on weekly jobless claims, housing starts and Philadelphia-area manufacturing activity due later this afternoon.
German DAX broke major support levels yesterday ending sharply in the red. The €12,335 old support turned resistance is now the price level to watch. The RSI looks slightly bullish his morning suggesting a rebound in the next few hours but short sellers may jump back in taking advantage of investors' negative sentiment across the board.
Support: 12122.5 12000
Resistance: 12335 12500