The German index of course was closed during the session on Tuesday, but looking at the longer-term charts we can see clearly that the €13,000 level is important. I think that we will find buyers in that area, and it’s only a matter of time before we rally towards the €13,150 level. If we can break above there, I think that the market goes to the €13,350 level above. The market is in general a very noisy market, but I believe in the overall uptrend more than anything else.
If we break out to the upside, I think that the market will eventually go looking towards my longer-term target, the €15,000 level. In general, this is a market that will be noisy, but if you add on dips, you should be able to build a reasonable position for the longer-term move. Ultimately, I think that the buyers continue to come back, and it’s not until we break down below the €12,800 level that I would be concerned about the overall uptrend. The DAX of course is the gateway for the European Union for most traders, so it makes sense that as the EU looks healthier, it’s likely that the market will favor the DAX. This is a great way to play the EU overall, as the German economy is such a large portion of what makes up the European Union economic landscape. Adding slowly in building your position continues to be my favorite way to play the DAX.