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DAX sets outside day reversal from a record high

As noted and potentially suspected in the final update here yesterday afternoon, the DAX did set in place an outside day reversal, from what was a new all time record high, at 17,003. In order to do that, the index needed to close below the previous close, at 16,766. The DAX closed yesterday at 16,752, with a loss of 13.82 points on the day. Now unlike gold, the DAX is not necessarily as one-dimensional in the technical sense, because it is also heavily influenced by the US, Asian and other European markets and those have clearly not followed suit. That said, this was a major reversal and should not be overlooked. However, the DAX futures are a little higher today, so we shall have to see how this plays out on the opening and beyond. One major reason for the rebound in the futures are the gains seen into the US close and higher Asian markets today following the Chinese stimulus news. The PBOC has offered a record stimulus of over $110 billion to commercial lenders. The DAX future is currently pricing the reopening this morning at around 16,770 
 

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