DAX - Buy at 8777.5 with a stop at 8696.0
7.00am open, MAR'16 contract - Bearish signals for DAX on the week and for Tuesday have been confirmed, investors selling the market yesterday to post a 6th lower daily low in a row and a loss of just over 200 Pts on the day. This has taken the deterioration since December to 2,650 Pts and in February to over 1,000 Pts. Daily sentiment is subsequently oversold with futures trading close to 8696.0, a 50% pullback to the entire 2011-2015 gains, so bounces have to be expected. With this in mind the outlook for Wednesday is to stay square on the open but to buy the dip at 8777.5, yesterday’s low with a stop loss at 8696.0, the 50% Fibonacci, or to buy up through 9037.5, yesterday’s high with a stop loss at 8950.0. Targets above 9037.5 are to 9155.0, Monday’s Marabuzo line and 9334.5, this week’s top.