Do not be fooled it is still volatile out there- step back and inspect the DAX

The rebound in Tokyo today led by just a couple of lines of remedial rhetoric from the BOJ is all well and good, but remember what got us here in the first place and it is not just about Japan. Granted that is a large part of the immediate story, but does not explain the whole picture, especially here in Europe. Global stock markets had gotten too complacent and lifted to record levels, driven by extreme valuations of a handful of mega-cap tech stocks- the Mag 6, or 7, or whatever you want to call them. As we all know, that has now suffered a correction, but has that correction yet run its course? The other thing to note here; is the elevation in geopolitical risk in recent days, adding to that rapid correction we have seen. The DAX fell very close to reaching a correction (17,002) when it dropped to 17,024 on Monday, but so far it has avoided it. The index closed yesterday at 17,354, with a poultry gain of just 15 points. Earlier this morning, the gains in the Nikkei helped to propel the opening outlook for the DAX to above 17,550, but it is not up there any more. The index is set to open higher though (now at around 17,430), but volatility remains elevated and all the while that is the case, its future will remain far from uncertain