The DAX may join a global sell-off on Thursday as investors fret about tariff-related effects on US company results. US stocks plunged overnight in the wake of mixed earnings news from the likes of AT&T and UPS as well as disappointing housing data. The European Central Bank meets today, with investors looking for signals whether the central bank will reaffirm a plan to end its quantitative easing program at the end of this year. Traders will also monitor President Draghi's comments on Italy's fiscal health. Germany's consumer confidence survey data is also due, with the forward-looking consumer sentiment index seen at 10.5 in November versus 10.6 in October.
The DAX slips to the lowest close since December 2016 closing lower for the 6th day in a row. The trend is clearly bearish, showing an intact downtrend in the short and medium terms. Long-term traders should watch the key technical support level at 10785 which will most probably attract some strong upside momentum. The RSI is also looking is starting to signal oversold conditions.
Support: 10785 -
Resistance: 10460 11634