We have been stating that the DAX look like it was well supported for the last several sessions, and that a breakout could possibly happen. On Friday, we saw that exact scenario unfold. The market is now well over the €1700 level, and is a very strong buy signal at this moment in time.
Because of this, we are looking for any type of pullback or a break of the Friday highs as a signal to start buying into the DAX. As far as selling is concerned, we’ve pretty much had it made clear to us that it can be done. In fact, we believe that this market will go much, much higher now that we have formed a solid base at the €7700 level.